Explain how diversification can reduce the risk of a


Problem:

Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.

Summary of question:

This question basically belongs to Finance as well as it discusses about diversification reducing the risk of portfolio of assets below the weighted average of risk of individual assets. This has been explained in the solution.

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Finance Basics: Explain how diversification can reduce the risk of a
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