The process of eliminating systematic risk through the purchase of a number of assets is called:

A) Portfolio reduction.
B) The systematic risk principle.
C) The beta principle.
D) The risk-reward slope.
E) Portfolio diversification.

Systematic Risk

The inherent risk that affects the entire market or a whole segment of the market, often influenced by geopolitical and economic factors.

Portfolio Diversification

An investment strategy used to reduce risk by allocating investments among various financial instruments, industries, and other categories.

Number of Assets

The total count of individual assets, both tangible and intangible, owned or controlled by an entity.