reword the following in same length Diversification involves spreading investments across various financial instruments, industries, and categories. By doing so, it aims to reduce the impact of exposure to any single asset or risk. This strategy is particularly useful because it minimizes the dependency on one particular investment, thereby protecting the investor from potential losses associated with that specific asset. The effectiveness of diversification lies in its ability to mitigate unsystematic riskrisk that pertains to a specific company or industry. By diversifying, investors can offset poor performance in one area with positive results in another, maintaining overall portfolio stability even when certain sectors underperform. Hedging is a financial strategy used to counterbalance potential investment losses. This technique involves using instruments like options, futures, and forward contracts. By employing these tools, investors can protect themselves against price fluctuations, safeguarding profits or costs from changes in the market, particularly in commodities, currencies, or interest rates. Insurance serves as a mechanism to transfer risk from an individual or organization to an insurance company. Common types of insurance policies include those for property, liability, health, and life. The impact of this approach is significant, as it provides coverage for risks that could have severe financial consequences, such as natural disasters or lawsu