Give Some Examples to Explain How Diversification Actually Works to Reduce

question 275

Essay

Give some examples to explain how diversification actually works to reduce portfolio risk.

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Definitions:

Internal Combustion Engine

An engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber.

Steam Engine

A heat engine that performs mechanical work using steam as its working fluid, playing a crucial role in the Industrial Revolution by powering machinery, locomotives, and ships.

Toxic Dumps

Sites where hazardous waste is disposed of without proper precautions, often causing environmental contamination and health issues for nearby communities.

Oil Refineries

Oil refineries are industrial processing plants where crude oil is transformed and refined into more useful products like gasoline, diesel, and other petrochemicals.