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- This should greatly diminish ones nonsystematic risk, though the systematic risk, which is nondiversifiable, is still present. What is 'Diversification' Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. E rationale behind this. Diversification. Owth strategies in business also include diversification, where a small company will sell new products to new markets. Is type of strategy can be.
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