SAT Practicea4859ba4-c5db-456d-9389-dadd92d8dfd3

Practice one SAT question at a time

Questions come from the Bluebook question bank. Made by Iskaa303 (Iskander Madikhan).

Among stock-market investors, the practice of diversification, or distributing investment funds across many different companies in many different industries, is regarded as blank since it protects investors from major losses if the value of one particular company or industry sector falls. 

Which choice completes the text with the most logical and precise word or phrase?