What is the principle of diversification and how did it help promote the success of businesses in the 1950s?

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Explanation:

Diversification refers to a risk management strategy whereby different investments are mixed within a portfolio. This is done in order to lower risk and also yield higher long term returns.

During the 1950s, investors chose securities that had minimal relationship with one another so as to reduce their overall risk Some other reasons for diversification in thus era was to maximize shareholder's value and also due to growth.

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