The concept of diversification is illustrated by the old saying

Question

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The saying "Don't put all your eggs in one basket" best represents the concept of diversification. It means that it is safer to spread one's investments across multiple assets rather than investing all the money in one asset, which increases the risk of losing everything if that asset performs poorly. Diversification helps to reduce risk by balancing out losses in one asset with gains in another, and thus it is a commonly used investment strategy.

The Concept of Diversification Is Illustrated by the Old Saying