Final answer:
The answer is 'd. all of the above' since you can diversify your investment portfolio in bonds, stocks, and real estate to mitigate risk and potentially smooth out returns over time.
Step-by-step explanation:
You can diversify in bonds, stocks, and real estate, which are all ways to invest your money. The concept of diversification means spreading out your investments across various asset classes or sectors to reduce risk. While investing in a single company's stock or bonds can be risky due to potential unfavorable market conditions or poor management decisions, diversification helps to mitigate those risks. By investing in a variety of companies, the performance of one is balanced against another, potentially smoothing out returns over time. Different investment types offer various levels of return and risk; for example, stocks typically have higher average returns than bonds over a sustained period, but they also come with higher volatility.