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Explain the Basics of Portfolio Strategy

question 17

Essay

Explain the basics of portfolio strategy. Identify the best approach to diversification using this strategy. Be sure to explain your rationale for arguing that the specified approach to diversification is the best.


Definitions:

Genus

A term that denotes a general category or class under which species and individuals are subsumed, often used in hierarchical classification.

Species

A class of things regarded as a subcategory of a wider class (a genus).

Box

A container often made of cardboard or wood, used for storage or shipping.

Referent

The actual thing or idea to which a word or phrase refers or applies.

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