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Is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio?

Is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio?
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Is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio?

User Stefan Rogin
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1 Answer

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Yes by diversifying the portfolio can reduce risk but the variety would have to be large since certain sectors rise and fall together
User Suvekshya
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