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⍰ ASK How do investment companies balance risk and reward in their portfolios?

Investment firms balance risk and reward by diversifying across stocks, bonds and real estate. This spreads risk and lessens the impact of poor performance.

Managers diversify within each asset class, considering industries and regions. They use advanced models to assess risks like market volatility and geopolitical events.

Portfolios are adjusted based on market conditions because uncertainty and aggressive bullish markets.
 

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