Someone who diversifies investments is more likely to increase both risks and returns. offset their losses with gains. reduce both risks and returns. increase liquidity of investments.

Someone who diversifies investments is more likely to offset their losses with gains. This means that this person will balance both his gains and losses - he will stay in equilibrium, given that he doesn't lose anything, but he also doesn't gain anything. This is because many of these investments will bring him a lot of profit, but on the other hand, many will make him lose a lot of money.