In nature, diversity is a source of ecosystem strength since failures are unlikely to eliminate all species. Therefore, the ecosystem will recover in some form and continue. In business or investing, diversity can provide a similar source of robustness against market instability or failures.
Specifically, when applied to a human context, diversity refers to a wide variety of cultures, ethnic groups, physical features (and race), socio-economic backgrounds, opinions, religious beliefs, sexuality, and gender identity.

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