Final answer:
Spreading an investment across many diverse assets will reduce some of the total risk.
Step-by-step explanation:
The principle of diversification tells us that spreading an investment across many diverse assets will reduce some of the total risk. By investing in a variety of assets, such as stocks from different companies or bonds from different issuers, investors can minimize the potential negative impact of any single investment performing poorly. This is because different investments will have different levels of risk, and by diversifying, investors can potentially offset losses in one asset with gains in another.