Explain How a Diversified Portfolio Can Reduce Fluctuations in Returns

question 107

Essay

Explain how a diversified portfolio can reduce fluctuations in returns even when the economy as a whole is experiencing contractions and expansions.

---

Definitions:

Warrior Class

A social class within various societies where members are primarily concerned with military service and warfare, often holding a high status due to their role in defense and expansion.

Seafaring Traders

Individuals or groups who engage in the business of trading goods across oceans and seas, often in historic contexts.

Lineage

The direct descent from an ancestor; establishing family or ethnic descent.

Kano School

A school of Japanese painting that emerged in the 15th century, known for its bold, colorful style and themes related to nature and history.