Which of the following represents a diversified portfolio?

A diversified portfolio is one that spreads investments across a variety of assets, such as different stocks, bonds, and other asset classes. This strategy is designed to reduce risk by mitigating the impact of any single investment's poor performance on the overall portfolio. By holding a mix of uncorrelated assets, an investor can achieve more stable returns over time, as downturns in some investments may be offset by better performances in others.

In contrast, concentrating investments in one company's stock, investing solely in government bonds, or focusing only on international stocks may increase exposure to specific risks. For example, investing all funds in one company's stock exposes the investor to company-specific risks, while only investing in government bonds limits diversification across asset classes and may miss out on potential higher returns from equities. Similarly, focusing solely on international stocks may introduce risks related to foreign markets, currencies, or geopolitical factors. Diversification aims to minimize these risks by distributing investments across a broader spectrum of opportunities.