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Andrea has $500 in the bank that she wants to invest in the stock market. she also wants to add $50 per month into this account from her part-time job. which is the best way for andrea to build up a diversified portfolio of stocks?

Respuesta :

The best way for andrea to build up a diversified portfolio of stocks is; by putting her money into dollar-cost averaging.

What is dollar-cost averaging?

Dollar-cost averaging is defined as an investment strategy in whereby the individual periodically purchases target assets or invests in a certain portion of funds in one security.

This therefore tells us that Dollar-cost averaging would reduce the risk tolerance associated with purchasing large stock securities.

Thus, we can recommend dollar cost averaging as the best way for andrea to build up a diversified portfolio of stocks.

Read more about stocks at; https://brainly.com/question/14360614

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