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Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985

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BuyFindarrow_forward

Brief Principles of Macroeconomics...

8th Edition
N. Gregory Mankiw
ISBN: 9781337091985
Textbook Problem

What is diversification? Does a stockholder get a greater benefit from diversification when going from 1 to 10 stocks or when going from 100 to 120 stocks?

To determine

Benefit of diversification.

Explanation

Diversification is the process of reducing risk. When the stock holder invests in 1 to 10 stocks, then he spreads the risk within the 10 stocks. If the stock holder invests in 100 to 200 sto...

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