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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 client was years old, and the funds were part of a retirement savings, what would you advise the client regarding having an adequately diversified mutual fund portfolio?
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 client was years old, and the funds were part of a retirement savings, what would you advise the client regarding having an adequately diversified mutual fund portfolio?
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