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Diversification is a strategy designed to reduce risk by spreading the portfolio across many investments. Selling umbrellas is a risky business; you would make plenty

Diversification is a strategy designed to reduce risk by spreading the portfolio across many investments. Selling umbrellas is a risky business; you would make plenty when it rains but could lose your shirt in a heat wave. Selling ice cream is no safer; you do well in the heat wave, but business is poor in the rain. However, if you invested in both businesses, you could make an average level of profit come rain or shine.

If a company did not currently have a diverse workforce, what would be the influence of promoting internally? How could a company move forward toward a diverse workforce and still use promoting from within?

This week's assignment is to watch the video about the Power of Diversification Please see link below

http://www.youtube.com/watch?v=pNO3Rmmezc0

Next, build a personal portfolio of 7-10 firms either equally invested or investment spread unevenly.

List the firms you have chosen and the reason for your choices and how diversification played a role in your choices. Since this is from your personal perspective, I expect your portfolios and selection reasoning to be different. Posting should not be less than 250 words. As I stated in the announcement for this week, I will also be grading on your writing skills.

http://www.youtube.com/watch?v=pNO3Rmmezc0

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