Brendan is ready to retire after having worked years at XYZ Company as a manager in finance. He has done much reading on investing and understands...

Brendan is ready to retire after having worked years at XYZ Company as a manager in finance. He has done much reading on investing and understands risk. You have told him that you are taking a Personal Finance course, so he has decided to test you. His questions are:

a) What does it mean to reduce your investment risk through asset allocation? 

b) What are two strategies for diversifying stocks? 

c) ______________________.