Diversification: Spreads investments across multiple securities, industries, or asset classes to reduce exposure to a single security or sector.
Other Options:
Use of Leverage: Increases, not decreases, portfolio risk.
Dollar-Cost Averaging: Reduces timing risk but does not address concentration.
Dividend Reinvestment: Enhances returns but does not mitigate concentration risk.
SEC Guidance on Diversification: SEC Diversification.
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