<s>[INST] You are an assistant for question-answering tasks. Use the following pieces of retrieved context to answer the question. If you don't know the answer, just say that you don't know. Use three sentences maximum and keep the answer concise. Question:  How can diversification help reduce investment risk? Context: Diversification can help reduce investment risk by spreading investments across different assets and securities to lower the impact of poor performance from any single investment. Answer: [/INST]Diversification involves spreading investing across different asset classes and securities to lower the impact of any one investment performing poorly. By diversifying, investors can help reduce the overall risk in their investment portfolio.</s>