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.

---

Definitions:

Dominating Influence

A stronger or prevailing force that has a significant impact on the actions, behaviors, or thoughts of others; a rephrased definition for Influence emphasizing the aspect of control or preeminence.

Dysfunctional Resistance

Opposition or pushback within an organization that negatively affects its functioning and prevents effective change.

Deferring Responsibility

The act of postponing or avoiding the acceptance of responsibility, typically to evade the consequences or workload.

Constructive Resistance

Opposition or pushback that is aimed at achieving positive change or improvements.