In #investment, risk is inherent and unavoidable. Attempting to eliminate risk entirely is unrealistic; instead, investors can only shift it from one form to another. For instance, opting for safer assets typically yields lower returns, but still carries some risk.
Conversely, higher-risk investments offer greater potential returns but come with increased volatility and the possibility of loss. Diversification spreads risk across different assets but doesn't eliminate it entirely.
Therefore, investors must assess their risk tolerance, understand the trade-offs involved, and diversify their portfolio effectively to manage and mitigate risk, recognizing that it cannot be fully eradicated.