Illustrate benefits of diversification on portfolio risk

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In this unit we learned to illustrate the benefits of diversification on portfolio risk. break down the factors that influence exchange rate fluctuations, relate the differences in the regulations that apply to mutual funds and hedge funds, and calculate the effects of fees on the returns to hedge fund investors.

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Lets extend the discussion by examining the practical implications of these concepts. For a fund of hedge funds, how does risk- based leverage differ from accounting-based leverage?

Reference no: EM13868137

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