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The Objective of Diversification Is to Reduce Risk

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Essay

The objective of diversification is to reduce risk. How does a person diversify a stock portfolio? How is risk measured?


Definitions:

Incidence

The number of new cases of a disorder in a particular population over a specified time period, usually a year.

Prevalence

Indicates how common or widespread a disease, condition, or characteristic is within a specific population at a given time.

Anorexia Nervosa

An eating disorder characterized by an intense fear of gaining weight and a distorted body image, leading to self-imposed starvation and severe weight loss.

Anorexia Nervosa

A psychological and potentially life-threatening eating disorder characterized by self-starvation, an intense fear of gaining weight, and a distorted body image.

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