The strategy of lowering risk exposure by holding a number of investments in a portfolio is called:

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Diversification is the strategy of holding a variety of investments in a portfolio to reduce risk exposure. By spreading investments across different asset classes, sectors, and geographies, an investor can minimize the impact of any one investment performing poorly. This can improve the overall risk-adjusted return of the portfolio. Augmentation, expansion, and optimization are not specific strategies for managing risk exposure through diversification.

The Strategy of Lowering Risk Exposure by Holding a Number