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A prospective client comes into your office looking for investment advice. The client feels that he is appropriately diversified because the portfolio currently holds six

A prospective client comes into your office looking for investment advice. The client feels that he is appropriately diversified because the portfolio currently holds six different growth mutual funds, hence a large variety of equity securities. Is this diversification? How would you measure diversification between funds? If this prospective client was 32 years old, and the funds in question were part of retirement savings, what would you advise the client regarding having an adequately diversified mutual fund portfolio?

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