FIN 571 / DQ #1

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Explain the relationship between risk and return. 

How does diversification reduce risk? Give an example of how diversification can reduce risk in a portfolio.

 

Remember that this is a corporate finance class, not a personal finance class.  Substantive responses will focus on corporate or large investors, investment managers and similar situations not personal investments such as 401ks, personal portfolios etc.  

 

*** Minimum 300 words*** Unplagiariszed

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