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The most common perception of how to diversity investments is to own many investments (stocks...

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Accounting

The most common perception of how to diversity investments is to own many investments (stocks and bonds, national and international, different industries) so that significant declines in the value of one investment will be offset by gains in others (or at least the loss will be small because no investment composes a substantial part of a diversified investor's portfolio). What other way is there to diversify that history tells us will smooth out returns and help investors avoid losing a substantial portion of their portfolio value?

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