Holding several types of stock can greatly reduce the risk in your portfolio.

Name: Holding several types of stock can greatly reduce the risk in your portfolio.
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Question

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Holding several types of stock can help diversify your portfolio, which helps reduce the overall risk. This is because different stocks will react differently to changes in the market, and having a variety of investments can help balance out any losses in one specific area.

Holding Several Types of Stock Can Greatly Reduce the Risk