Examlex
Select the sentence with more concise language.
Investment Risk
The potential for loss of value in an investment, often measured by the variability of returns associated with a given asset.
Risk-averse Investor
A risk-averse investor is someone who prefers to minimize financial risk and is likely to choose investments with lower potential returns to avoid losing money.
Perfect Positive Correlation
A statistical measure indicating that two variables move in the same direction at the same rate all the time.
Diversification
A risk management strategy involving the mixing of different investments within a portfolio to reduce exposure to any single asset or risk.
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