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Explain the strategy of diversification

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Explain the Strategy of Diversification. Your answer should include what a Diversification strategy is; which kind of risk can be diversified away and which one cannot. How do you measure the un-diversifiable risk? Give an interpretation of the different values of this measure. Why do the benefits from diversification depend on the correlation between the returns on the assets in the investor's portfolio? Discuss fully.

Reference no: EM133116422

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