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Sagot :
Final answer:
Diversification through mutual funds can reduce investment risk by spreading investments across different assets in a portfolio.
Explanation:
Diversification is a key strategy to reduce investment risk by spreading investments across various assets. For example, investing in mutual funds that hold a mix of stocks and bonds can help mitigate the impact of a single asset's poor performance. By following the principle of not putting all your eggs in one basket, investors can achieve better overall portfolio performance.
Learn more about Investment Risk Diversification here:
https://brainly.com/question/31688776
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