Final answer:
The inquiry addresses the investing concept of diversification, where adding a variety of financial instruments to one's portfolio can decrease risk and potentially increase long-term returns.
Step-by-step explanation:
The question pertains to the concept of diversification in investing. Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio. The idea is that a portfolio constructed of different kinds of assets will, on average, yield higher long-term returns and lower the risk of any individual holding or security. When Greg diversifies his investment portfolio, instead of only holding stock in Boston Organic, he would include a variety of financial instruments, such as stocks from different industries, bonds, real estate investment trusts (REITs), and international assets. This would reduce the risk associated with his portfolio because not all asset classes or industries react in the same way to economic events.