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

Question

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Owning ten stocks rather than two represents diversification, as having more stocks reduces the overall risk in the portfolio by spreading the investment across different industries and companies. Asset allocation is the process of dividing investments among different asset categories. The risk return relationship refers to the trade-off between risk and potential return. Money market funds are investment vehicles that invest in short-term, low-risk debt securities. Prospecting refers to the process of identifying potential customers or clients.

Owning Ten Stocks Rather Than Two Illustrates the Concept of ________