Rational investors should not invest their entire money in a single stock regardless of how highly-recommended that stock is by professional financial analysts. Investors are better off investing their money in a diversified manner to cut down investment risk and achieve a better risk-return tradeoff. Explain whether this makes financial sense and state your financial arguments for diversification. Also, state what percentage of the overall risk (SD) of a NYSE-listed average stock can be eliminated through diversification according to your book and what risk component is reduced via diversification. Limit your answers to ten sentences.