Owning ten stocks rather than two illustrates the concept of ________.

Question

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Owning ten stocks rather than two illustrates the concept of diversification, which refers to the practice of spreading investments across different asset classes and securities to reduce risks. By owning ten stocks, investors can reduce specific risks associated with individual stocks and increase overall portfolio returns. Asset allocation and the risk-return relationship are related but separate concepts from diversification, and money market funds are a specific type of investment instrument that may or may not be used in a diversified portfolio.

Owning Ten Stocks Rather Than Two Illustrates the Concept of ________