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What Are Some of the Limits of Diversification Benefits

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What are some of the limits of diversification benefits?


Definitions:

Drawer

In banking and finance, the person or entity that writes a check or draft instructing a drawee to pay a specified sum to a third party.

Negotiable

Capable of being transferred from one person to another through endorsement or delivery, often used in the context of negotiable instruments like checks.

Promise

A promise or guarantee to take a specific action or ensure a certain outcome.

Order To Pay

A directive, usually legal or financial in nature, mandating that a certain amount of money must be paid.

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