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(a) You are an investment advisor. During a consultation a client says to you I want to diversify my portfolio. I currently hold investments in
(a) You are an investment advisor. During a consultation a client says to you I want to diversify my portfolio. I currently hold investments in two companies, but Ive read thatifI add more assets to my portfolio, I can eliminate risk completely. Explain the principle of diversification, then using a diagram, advice the investor as to whether his assumption is correct.
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