[{"data":1,"prerenderedAt":61},["ShallowReactive",2],{"term:diversification":3},{"term":4,"related":48},{"id":5,"title":6,"body":7,"category":27,"description":28,"extension":29,"faq":30,"meta":34,"navigation":35,"path":36,"related":37,"seo":41,"stem":42,"takeaways":43,"__hash__":47},"terms\u002Fterms\u002Fdiversification.md","Diversification",{"type":8,"value":9,"toc":22},"minimark",[10,15,19],[11,12,14],"h2",{"id":13},"understanding-diversification","Understanding Diversification",[16,17,18],"p",{},"Diversification lowers risk by holding assets that do not all move together. A loss in one holding is cushioned by the others.",[16,20,21],{},"It reduces company-specific risk but cannot remove market-wide risk.",{"title":23,"searchDepth":24,"depth":24,"links":25},"",2,[26],{"id":13,"depth":24,"text":14},"investing","Spreading money across many investments to reduce the impact of any one loss.","md",[31],{"q":32,"a":33},"How many stocks make a portfolio diversified?","Studies suggest that 20 to 30 stocks across industries remove much company-specific risk, but a broad index fund holds hundreds.",{},true,"\u002Fterms\u002Fdiversification",[38,39,40],"asset-allocation","index-fund","beta",{"title":6,"description":28},"terms\u002Fdiversification",[44,45,46],"Diversification spreads risk across many holdings.","It reduces company-specific risk, not market risk.","Index funds offer broad diversification in one purchase.","JplSSXXrjpJ_6HoxUGvtoGey_82v6FC9kh0A-1i1YEA",[49,53,57],{"title":50,"description":51,"path":52},"Asset Allocation","How a portfolio is split across asset classes such as stocks, bonds, and cash.","\u002Fterms\u002Fasset-allocation",{"title":54,"description":55,"path":56},"Beta","A measure of how much a stock moves relative to the overall market.","\u002Fterms\u002Fbeta",{"title":58,"description":59,"path":60},"Index Fund","A fund built to match the performance of a market index.","\u002Fterms\u002Findex-fund",1793226379168]