How would diversification benefit john

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Question - John is a retail investor who lives in the eastern suburbs and enjoys investing on the Australian Securities Exchange. For a long time, he has only managed to invest in a single company due to insufficient savings. Howard has been keen to invest more and fortunately for him he suddenly has inherited some money from his grandfather. He can finally invest more money to create a diversified portfolio. How would diversification benefit John? Explain in the context of Portfolio Theory.

Reference no: EM133185177

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