What is the core concept of diversification in investment? Option: "Spreading investments across different asset classes and sectors to manage risk", "Predicting future market trends with absolute certainty", "Timing the market to buy low and sell high consistently", "Investing all your funds in a single high-performing asset"

What is the core concept of diversification in investment?

In the realm of investment strategy, what does the term 'diversification' signify?

What is the core principle behind diversifying investments in a stock portfolio?

How does diversification reduce the impact of market volatility on an investment portfolio?

What is the primary benefit of diversification in investment?

In the context of investment portfolio management, what is the strategy of spreading investments across various asset classes to mitigate risk?