SlideShare a Scribd company logo
How important is diversification to investors? Is it equally important to all investors? To whom
might it be less important?
Solution
Spreading your money across different types of investments reduces the effect on your overall
portfolio if there is a downturn in one investment type. This is called diversification.
Reasons to diversify
The limits of diversification
A well-diversified portfolio provides reasonable protection under normal market conditions.
Diversification works because, in general, asset prices do not move perfectly together. However,
diversification becomes less effective in extreme market conditions. Generally conditions
become extreme when something unexpected occurs. Examples are a market crash or
government default. When this happens, markets can become illiquid and the prices of most
investments drop.

More Related Content

Similar to How important is diversification to investors- Is it equally important.docx

The place of hedging as a risk avert
The place of hedging as a risk avertThe place of hedging as a risk avert
The place of hedging as a risk avert
Egharevba Etinosa Lawrence
 
What is Hedging ? - An Ultimate Guide
What is Hedging ?  -   An Ultimate GuideWhat is Hedging ?  -   An Ultimate Guide
What is Hedging ? - An Ultimate Guide
CapitalXtend LLC
 
Hedge funds
Hedge funds Hedge funds
Hedge funds
Sharon Pangeth
 
Hedge Funds.ppt
Hedge Funds.pptHedge Funds.ppt
Hedge Funds.ppt
ShivaniSingh196671
 
LPL Financial alternative investments
LPL Financial alternative investmentsLPL Financial alternative investments
LPL Financial alternative investments
Thomas Kelly
 
18 Wealth Creation
18 Wealth Creation18 Wealth Creation
18 Wealth Creation
Oliver Taylor
 
Lintner Revisited Quantitative Analysis (2)
Lintner Revisited Quantitative Analysis (2)Lintner Revisited Quantitative Analysis (2)
Lintner Revisited Quantitative Analysis (2)
Deana Lanham
 
Should we bail out of europe
Should we bail out of europeShould we bail out of europe
Should we bail out of europe
Better Financial Education
 
International mutual fund
International mutual fundInternational mutual fund
International mutual fund
Rehan Akhtar
 
Fundamentals of asset class investing
Fundamentals of asset class investingFundamentals of asset class investing
Fundamentals of asset class investing
Better Financial Education
 
Portfolio perspectives avoiding_loss_0714
Portfolio perspectives avoiding_loss_0714Portfolio perspectives avoiding_loss_0714
Portfolio perspectives avoiding_loss_0714
Better Financial Education
 
Active & Passive[1]
Active & Passive[1]Active & Passive[1]
Active & Passive[1]
Chris Weetman
 
How Investors Control their Psychology During Market Crashes.pptx
How Investors Control their Psychology  During Market  Crashes.pptxHow Investors Control their Psychology  During Market  Crashes.pptx
How Investors Control their Psychology During Market Crashes.pptx
univestseo
 
EffectivePortfolioDimensionality_StandardLifeInvestments.PDF
EffectivePortfolioDimensionality_StandardLifeInvestments.PDFEffectivePortfolioDimensionality_StandardLifeInvestments.PDF
EffectivePortfolioDimensionality_StandardLifeInvestments.PDF
Brian Fleming
 
What Does Hedge Fund Mean
What Does Hedge Fund MeanWhat Does Hedge Fund Mean
What Does Hedge Fund Mean
CHANDAN RASTOGI
 
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
OntarioTando
 
How to Build a Diversified Investment Portfolio for Long.pdf
How to Build a Diversified Investment Portfolio for Long.pdfHow to Build a Diversified Investment Portfolio for Long.pdf
How to Build a Diversified Investment Portfolio for Long.pdf
CIOWomenMagazine
 
PPT By Harshita.pptx
PPT By Harshita.pptxPPT By Harshita.pptx
PPT By Harshita.pptx
HarshitaShrivastava53
 
Dialogs Spring 2010
Dialogs Spring 2010Dialogs Spring 2010
Dialogs Spring 2010
Harvey Ziegler
 
Equity basics
Equity basicsEquity basics
Equity basics
mockslide
 

Similar to How important is diversification to investors- Is it equally important.docx (20)

The place of hedging as a risk avert
The place of hedging as a risk avertThe place of hedging as a risk avert
The place of hedging as a risk avert
 
What is Hedging ? - An Ultimate Guide
What is Hedging ?  -   An Ultimate GuideWhat is Hedging ?  -   An Ultimate Guide
What is Hedging ? - An Ultimate Guide
 
Hedge funds
Hedge funds Hedge funds
Hedge funds
 
Hedge Funds.ppt
Hedge Funds.pptHedge Funds.ppt
Hedge Funds.ppt
 
LPL Financial alternative investments
LPL Financial alternative investmentsLPL Financial alternative investments
LPL Financial alternative investments
 
18 Wealth Creation
18 Wealth Creation18 Wealth Creation
18 Wealth Creation
 
Lintner Revisited Quantitative Analysis (2)
Lintner Revisited Quantitative Analysis (2)Lintner Revisited Quantitative Analysis (2)
Lintner Revisited Quantitative Analysis (2)
 
Should we bail out of europe
Should we bail out of europeShould we bail out of europe
Should we bail out of europe
 
International mutual fund
International mutual fundInternational mutual fund
International mutual fund
 
Fundamentals of asset class investing
Fundamentals of asset class investingFundamentals of asset class investing
Fundamentals of asset class investing
 
Portfolio perspectives avoiding_loss_0714
Portfolio perspectives avoiding_loss_0714Portfolio perspectives avoiding_loss_0714
Portfolio perspectives avoiding_loss_0714
 
Active & Passive[1]
Active & Passive[1]Active & Passive[1]
Active & Passive[1]
 
How Investors Control their Psychology During Market Crashes.pptx
How Investors Control their Psychology  During Market  Crashes.pptxHow Investors Control their Psychology  During Market  Crashes.pptx
How Investors Control their Psychology During Market Crashes.pptx
 
EffectivePortfolioDimensionality_StandardLifeInvestments.PDF
EffectivePortfolioDimensionality_StandardLifeInvestments.PDFEffectivePortfolioDimensionality_StandardLifeInvestments.PDF
EffectivePortfolioDimensionality_StandardLifeInvestments.PDF
 
What Does Hedge Fund Mean
What Does Hedge Fund MeanWhat Does Hedge Fund Mean
What Does Hedge Fund Mean
 
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
Building a Diversified Investment Portfolio for Growth 📈💼 #FinancialDiversity101
 
How to Build a Diversified Investment Portfolio for Long.pdf
How to Build a Diversified Investment Portfolio for Long.pdfHow to Build a Diversified Investment Portfolio for Long.pdf
How to Build a Diversified Investment Portfolio for Long.pdf
 
PPT By Harshita.pptx
PPT By Harshita.pptxPPT By Harshita.pptx
PPT By Harshita.pptx
 
Dialogs Spring 2010
Dialogs Spring 2010Dialogs Spring 2010
Dialogs Spring 2010
 
Equity basics
Equity basicsEquity basics
Equity basics
 

More from hjeffrey

How java applet security is different from java security and why excep.docx
How java applet security is different from java security and why excep.docxHow java applet security is different from java security and why excep.docx
How java applet security is different from java security and why excep.docx
hjeffrey
 
How have changes in recording and broadcasting technologies changed mu.docx
How have changes in recording and broadcasting technologies changed mu.docxHow have changes in recording and broadcasting technologies changed mu.docx
How have changes in recording and broadcasting technologies changed mu.docx
hjeffrey
 
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docxHow many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
hjeffrey
 
How might an astronomer use the knowledge of refraction- How might an.docx
How might an astronomer use the knowledge of refraction-  How might an.docxHow might an astronomer use the knowledge of refraction-  How might an.docx
How might an astronomer use the knowledge of refraction- How might an.docx
hjeffrey
 
How do you account for the fact that- although iodine is placed in the.docx
How do you account for the fact that- although iodine is placed in the.docxHow do you account for the fact that- although iodine is placed in the.docx
How do you account for the fact that- although iodine is placed in the.docx
hjeffrey
 
how many equivalents are in 0-036 moles of Ca2+- how many equivalents.docx
how many equivalents are in 0-036 moles of Ca2+-  how many equivalents.docxhow many equivalents are in 0-036 moles of Ca2+-  how many equivalents.docx
how many equivalents are in 0-036 moles of Ca2+- how many equivalents.docx
hjeffrey
 
How is atmospheric nitrogen reduced to a biological useful form- What.docx
How is atmospheric nitrogen reduced to a biological useful form- What.docxHow is atmospheric nitrogen reduced to a biological useful form- What.docx
How is atmospheric nitrogen reduced to a biological useful form- What.docx
hjeffrey
 
How is wireless capacity defined and what are some of the constraints.docx
How is wireless capacity defined and what are some of the constraints.docxHow is wireless capacity defined and what are some of the constraints.docx
How is wireless capacity defined and what are some of the constraints.docx
hjeffrey
 
How is the nature of 21st century communication changing- How is the n.docx
How is the nature of 21st century communication changing- How is the n.docxHow is the nature of 21st century communication changing- How is the n.docx
How is the nature of 21st century communication changing- How is the n.docx
hjeffrey
 
How did the enclosures law fuel the Industrial Revolution in Great Bri.docx
How did the enclosures law fuel the Industrial Revolution in Great Bri.docxHow did the enclosures law fuel the Industrial Revolution in Great Bri.docx
How did the enclosures law fuel the Industrial Revolution in Great Bri.docx
hjeffrey
 
How do short-term and long-term orientation relate to corporate profit.docx
How do short-term and long-term orientation relate to corporate profit.docxHow do short-term and long-term orientation relate to corporate profit.docx
How do short-term and long-term orientation relate to corporate profit.docx
hjeffrey
 
How does the object-oriented view of component-level design differ fro.docx
How does the object-oriented view of component-level design differ fro.docxHow does the object-oriented view of component-level design differ fro.docx
How does the object-oriented view of component-level design differ fro.docx
hjeffrey
 
How do the physical features of mainland Southeast Asia compare and co.docx
How do the physical features of mainland Southeast Asia compare and co.docxHow do the physical features of mainland Southeast Asia compare and co.docx
How do the physical features of mainland Southeast Asia compare and co.docx
hjeffrey
 
How do many companies structure the internal audit group-'s reporting.docx
How do many companies structure the internal audit group-'s reporting.docxHow do many companies structure the internal audit group-'s reporting.docx
How do many companies structure the internal audit group-'s reporting.docx
hjeffrey
 
How do semaphore relate to Petri Nets in detail-Solutionpetri nets- i.docx
How do semaphore relate to Petri Nets in detail-Solutionpetri nets-  i.docxHow do semaphore relate to Petri Nets in detail-Solutionpetri nets-  i.docx
How do semaphore relate to Petri Nets in detail-Solutionpetri nets- i.docx
hjeffrey
 
How do you show charging by induction using a comb- or another plastic.docx
How do you show charging by induction using a comb- or another plastic.docxHow do you show charging by induction using a comb- or another plastic.docx
How do you show charging by induction using a comb- or another plastic.docx
hjeffrey
 
How do taxes impact your accumulation-SolutionThere are three asset it.docx
How do taxes impact your accumulation-SolutionThere are three asset it.docxHow do taxes impact your accumulation-SolutionThere are three asset it.docx
How do taxes impact your accumulation-SolutionThere are three asset it.docx
hjeffrey
 
How does sucrose and lactose react to Bial-'s test- How does sucrose.docx
How does sucrose and lactose react to Bial-'s test-  How does sucrose.docxHow does sucrose and lactose react to Bial-'s test-  How does sucrose.docx
How does sucrose and lactose react to Bial-'s test- How does sucrose.docx
hjeffrey
 
How did the DI change in 2013SolutionCompletelly Discussion on world c.docx
How did the DI change in 2013SolutionCompletelly Discussion on world c.docxHow did the DI change in 2013SolutionCompletelly Discussion on world c.docx
How did the DI change in 2013SolutionCompletelly Discussion on world c.docx
hjeffrey
 
How do you write dissociation equations for equilibrium and how do you.docx
How do you write dissociation equations for equilibrium and how do you.docxHow do you write dissociation equations for equilibrium and how do you.docx
How do you write dissociation equations for equilibrium and how do you.docx
hjeffrey
 

More from hjeffrey (20)

How java applet security is different from java security and why excep.docx
How java applet security is different from java security and why excep.docxHow java applet security is different from java security and why excep.docx
How java applet security is different from java security and why excep.docx
 
How have changes in recording and broadcasting technologies changed mu.docx
How have changes in recording and broadcasting technologies changed mu.docxHow have changes in recording and broadcasting technologies changed mu.docx
How have changes in recording and broadcasting technologies changed mu.docx
 
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docxHow many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
How many grams of solid sodium fluoride should be added to 1-50 L of 0.docx
 
How might an astronomer use the knowledge of refraction- How might an.docx
How might an astronomer use the knowledge of refraction-  How might an.docxHow might an astronomer use the knowledge of refraction-  How might an.docx
How might an astronomer use the knowledge of refraction- How might an.docx
 
How do you account for the fact that- although iodine is placed in the.docx
How do you account for the fact that- although iodine is placed in the.docxHow do you account for the fact that- although iodine is placed in the.docx
How do you account for the fact that- although iodine is placed in the.docx
 
how many equivalents are in 0-036 moles of Ca2+- how many equivalents.docx
how many equivalents are in 0-036 moles of Ca2+-  how many equivalents.docxhow many equivalents are in 0-036 moles of Ca2+-  how many equivalents.docx
how many equivalents are in 0-036 moles of Ca2+- how many equivalents.docx
 
How is atmospheric nitrogen reduced to a biological useful form- What.docx
How is atmospheric nitrogen reduced to a biological useful form- What.docxHow is atmospheric nitrogen reduced to a biological useful form- What.docx
How is atmospheric nitrogen reduced to a biological useful form- What.docx
 
How is wireless capacity defined and what are some of the constraints.docx
How is wireless capacity defined and what are some of the constraints.docxHow is wireless capacity defined and what are some of the constraints.docx
How is wireless capacity defined and what are some of the constraints.docx
 
How is the nature of 21st century communication changing- How is the n.docx
How is the nature of 21st century communication changing- How is the n.docxHow is the nature of 21st century communication changing- How is the n.docx
How is the nature of 21st century communication changing- How is the n.docx
 
How did the enclosures law fuel the Industrial Revolution in Great Bri.docx
How did the enclosures law fuel the Industrial Revolution in Great Bri.docxHow did the enclosures law fuel the Industrial Revolution in Great Bri.docx
How did the enclosures law fuel the Industrial Revolution in Great Bri.docx
 
How do short-term and long-term orientation relate to corporate profit.docx
How do short-term and long-term orientation relate to corporate profit.docxHow do short-term and long-term orientation relate to corporate profit.docx
How do short-term and long-term orientation relate to corporate profit.docx
 
How does the object-oriented view of component-level design differ fro.docx
How does the object-oriented view of component-level design differ fro.docxHow does the object-oriented view of component-level design differ fro.docx
How does the object-oriented view of component-level design differ fro.docx
 
How do the physical features of mainland Southeast Asia compare and co.docx
How do the physical features of mainland Southeast Asia compare and co.docxHow do the physical features of mainland Southeast Asia compare and co.docx
How do the physical features of mainland Southeast Asia compare and co.docx
 
How do many companies structure the internal audit group-'s reporting.docx
How do many companies structure the internal audit group-'s reporting.docxHow do many companies structure the internal audit group-'s reporting.docx
How do many companies structure the internal audit group-'s reporting.docx
 
How do semaphore relate to Petri Nets in detail-Solutionpetri nets- i.docx
How do semaphore relate to Petri Nets in detail-Solutionpetri nets-  i.docxHow do semaphore relate to Petri Nets in detail-Solutionpetri nets-  i.docx
How do semaphore relate to Petri Nets in detail-Solutionpetri nets- i.docx
 
How do you show charging by induction using a comb- or another plastic.docx
How do you show charging by induction using a comb- or another plastic.docxHow do you show charging by induction using a comb- or another plastic.docx
How do you show charging by induction using a comb- or another plastic.docx
 
How do taxes impact your accumulation-SolutionThere are three asset it.docx
How do taxes impact your accumulation-SolutionThere are three asset it.docxHow do taxes impact your accumulation-SolutionThere are three asset it.docx
How do taxes impact your accumulation-SolutionThere are three asset it.docx
 
How does sucrose and lactose react to Bial-'s test- How does sucrose.docx
How does sucrose and lactose react to Bial-'s test-  How does sucrose.docxHow does sucrose and lactose react to Bial-'s test-  How does sucrose.docx
How does sucrose and lactose react to Bial-'s test- How does sucrose.docx
 
How did the DI change in 2013SolutionCompletelly Discussion on world c.docx
How did the DI change in 2013SolutionCompletelly Discussion on world c.docxHow did the DI change in 2013SolutionCompletelly Discussion on world c.docx
How did the DI change in 2013SolutionCompletelly Discussion on world c.docx
 
How do you write dissociation equations for equilibrium and how do you.docx
How do you write dissociation equations for equilibrium and how do you.docxHow do you write dissociation equations for equilibrium and how do you.docx
How do you write dissociation equations for equilibrium and how do you.docx
 

Recently uploaded

IGCSE Biology Chapter 14- Reproduction in Plants.pdf
IGCSE Biology Chapter 14- Reproduction in Plants.pdfIGCSE Biology Chapter 14- Reproduction in Plants.pdf
IGCSE Biology Chapter 14- Reproduction in Plants.pdf
Amin Marwan
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
Celine George
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
MysoreMuleSoftMeetup
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
Solutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptxSolutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptx
spdendr
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
Nicholas Montgomery
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
Colégio Santa Teresinha
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
MJDuyan
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
Katrina Pritchard
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
S. Raj Kumar
 
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience
Wahiba Chair Training & Consulting
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
iammrhaywood
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
WaniBasim
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
Celine George
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
Nguyen Thanh Tu Collection
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Excellence Foundation for South Sudan
 
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
สมใจ จันสุกสี
 

Recently uploaded (20)

IGCSE Biology Chapter 14- Reproduction in Plants.pdf
IGCSE Biology Chapter 14- Reproduction in Plants.pdfIGCSE Biology Chapter 14- Reproduction in Plants.pdf
IGCSE Biology Chapter 14- Reproduction in Plants.pdf
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17How to Make a Field Mandatory in Odoo 17
How to Make a Field Mandatory in Odoo 17
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
Solutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptxSolutons Maths Escape Room Spatial .pptx
Solutons Maths Escape Room Spatial .pptx
 
writing about opinions about Australia the movie
writing about opinions about Australia the moviewriting about opinions about Australia the movie
writing about opinions about Australia the movie
 
MARY JANE WILSON, A “BOA MÃE” .
MARY JANE WILSON, A “BOA MÃE”           .MARY JANE WILSON, A “BOA MÃE”           .
MARY JANE WILSON, A “BOA MÃE” .
 
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumPhilippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) Curriculum
 
BBR 2024 Summer Sessions Interview Training
BBR  2024 Summer Sessions Interview TrainingBBR  2024 Summer Sessions Interview Training
BBR 2024 Summer Sessions Interview Training
 
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching AptitudeUGC NET Exam Paper 1- Unit 1:Teaching Aptitude
UGC NET Exam Paper 1- Unit 1:Teaching Aptitude
 
How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience How to Create a More Engaging and Human Online Learning Experience
How to Create a More Engaging and Human Online Learning Experience
 
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptxNEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
NEWSPAPERS - QUESTION 1 - REVISION POWERPOINT.pptx
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
Liberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdfLiberal Approach to the Study of Indian Politics.pdf
Liberal Approach to the Study of Indian Politics.pdf
 
How to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 InventoryHow to Setup Warehouse & Location in Odoo 17 Inventory
How to Setup Warehouse & Location in Odoo 17 Inventory
 
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
BÀI TẬP BỔ TRỢ TIẾNG ANH LỚP 9 CẢ NĂM - GLOBAL SUCCESS - NĂM HỌC 2024-2025 - ...
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
Your Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective UpskillingYour Skill Boost Masterclass: Strategies for Effective Upskilling
Your Skill Boost Masterclass: Strategies for Effective Upskilling
 
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
คำศัพท์ คำพื้นฐานการอ่าน ภาษาอังกฤษ ระดับชั้น ม.1
 

How important is diversification to investors- Is it equally important.docx

  • 1. How important is diversification to investors? Is it equally important to all investors? To whom might it be less important? Solution Spreading your money across different types of investments reduces the effect on your overall portfolio if there is a downturn in one investment type. This is called diversification. Reasons to diversify The limits of diversification A well-diversified portfolio provides reasonable protection under normal market conditions. Diversification works because, in general, asset prices do not move perfectly together. However, diversification becomes less effective in extreme market conditions. Generally conditions become extreme when something unexpected occurs. Examples are a market crash or government default. When this happens, markets can become illiquid and the prices of most investments drop.