What does diversification do to the risk

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1. What does diversification do to the risk and return characteristics of a portfolio? Explain what we mean when we say that one portfolio dominates another portfolio.

2. You purchase a bond with an invoice price of $1,095. The bond has a coupon rate of 9.9 percent, semiannual coupons, and there are two months to the next coupon date. Required: What is the clean price of the bond?

Reference no: EM131353509

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What does diversification do to the risk : What does diversification do to the risk and return characteristics of a portfolio? Explain what we mean when we say that one portfolio dominates another portfolio. You purchase a bond with an invoice price of $1,095. The bond has a coupon rate of 9...

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