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Diversification cannot reduce the portfolio risk if you invest in different stocks in the same industry. Why? Explain. Diversification reduces the portfolio risk if you
Diversification cannot reduce the portfolio risk if you invest in different stocks in the same industry. Why? Explain. Diversification reduces the portfolio risk if you invest different stocks in different industries. Why? Explain.
If you would like to form your stock investment portfolio, (1) how many stocks would you include in the portfolio, and (2) what are these stocks (companies) in the portfolio. Explain why you choose these companies.
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