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Features between shares and bonds as investments

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Reference no: EM132681871

James comes to you for financial advice concerning his investment strategy. He is considering investing $40,000 in a portfolio consisting of shares and bonds.

REQUIRED:

(a) Explain to James any three differences in features between shares and bonds as investments.

(b) Explain to James what diversification is and how it is relevant in managing risk in a portfolio.

Reference no: EM132681871

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