5.3 Reducing Risk >Diversification(多样化)-Reducing risk by allocating resources to a variety of activities whose outcomes are not closely related. >Negatively correlated-Having a tendency to move in opposite directions(said of two variables). >The law of Large Numbers(大数定律)一telling us that although single events may be random and largely unpredictable,the average outcome of many similar events can be predicted. 5.3 Reducing Risk ➢ Diversification (多样化) -Reducing risk by allocating resources to a variety of activities whose outcomes are not closely related. ➢ Negatively correlated-Having a tendency to move in opposite directions (said of two variables). ➢ The law of Large Numbers(大数定律)—telling us that although single events may be random and largely unpredictable, the average outcome of many similar events can be predicted