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Which of the following investment strategies best illustrates the principal of diversification? Putting all your investment capital into a stock fund that invests in 100

Which of the following investment strategies best illustrates the principal of diversification?

Putting all your investment capital into a stock fund that invests in 100 different biotech companies.

Putting all your investment capital into US Treasury bonds.

Putting all your investment capital into a stock fund that invests in the 500 largest companies in the United States.

Putting half of your investment capital into a few of your favorite stocks and half into US Treasury bonds.

Putting all your investment capital into the 10 largest companies in the world.

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