Why is diversification in a stock portfolio important

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Reference no: EM131297412

1. If an asset is called derivative, what does that mean? Explain answer and give examples.

2. Why is diversification in a stock portfolio important? Would diversification decrease all risk?

3. Where can one find good estimates of current betas for real companies? (One post per source please.)

4. What are the money markets and what are the capital markets? How do they differ? What are their respective activities?

Reference no: EM131297412

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