What Does Diversification Do to the Risk and Return Characteristics

question 63

Essay

What does diversification do to the risk and return characteristics of a portfolio?

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Definitions:

Sigmund Freud

An Austrian neurologist known for founding psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Unconscious

The part of the mind that is inaccessible to the conscious thought but that affects behavior and emotions.

Alfred Adler

A psychologist who contributed to the development of psychotherapy and originated theories on inferiority complex.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology and contributed significantly to the understanding of the psyche, dream analysis, and personality types.