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Bart, an 11-month-old, is playing on the floor of his room when his older brother steers a remote-control car (that Bart has never seen) toward him. Bart immediately looks up at his father, who is on the verge of yelling, "Stop, it's going to hit Bart!" Bart then breaks into quickly flowing tears. Bart has engaged in
Diversify
To invest in a variety of assets to reduce risk in an investment portfolio.
Stand-Alone Risk
The risk associated with a single operating asset or investment, without considering other risks in a portfolio or company.
Risk Impacts
The potential negative consequences or losses arising from uncertainties and vulnerabilities within a system or investment.
Portfolio
A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual, exchange-traded, and closed funds.
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