Rather than invest in the stock of just one or two companies, you purchase a variety of different types of investments in order to minimize risk. What is this approach known as?

Question

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This approach is known as asset allocation, where you diversify your investments across various types of assets such as stocks, bonds, real estate, and others to reduce the overall risk of your portfolio. This strategy helps to minimize the impact of any negative performance of a single asset class on your entire portfolio.

Rather Than Invest in the Stock of Just One or Two