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Investing 2: Index Funds & The Bet

Planet Money Summer School

CHAPTER

The Power of Diversification in Investments

Diversification is a term for choosing to spread out your money among a lot of investments. It's the one agst free lunch we have in finance, is that you get a higher return and less risk. Emi can't overstate it, cause we've been saying all along, no risk, no reward. If you take you have a higher return, you are probably taking on more risk.

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