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the triple alliance. germany and austria-hungary were already allies by 1879 when, worried about a threat from russia, they formed the dual alliance. italy joined the group in 1882. there was a concern about a possible attack from france and the alliance needed powerful friends to defend it.

he risk-return relationship. generally, the higher the potential return of an investment, the higher the risk. there is no guarantee that you will actually get a higher return by accepting more risk. diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.

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