Rational investor to hold fully diversified portfolio

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Reference no: EM132011700

Explain in detail why is it important for a normal, rational investor to hold a fully diversified portfolio. Use precise language (correct finance terminology) and describe what happens in your portfolio as you go from holding one stock to being fully diversified. DO NOT use the wording "put all your eggs in one basket" at any time in your answer or you will suffer a 5-point penalty.

Reference no: EM132011700

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