Explain how diversification works to reduce portfolio risk

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Reference no: EM131569584

1) A client says he doesn’t want a diversified portfolio since it won’t have the highest return.

A) Explain the proper way to look at return using concept such as the Sharpe ratio.

B) Explain how diversification works to reduce portfolio risk.

c) Give examples of various assets that can potentially provide portfolio diversification.

Reference no: EM131569584

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