Timothy as a retail investor enjoys investing but for a long time has only managed to invest

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Timothy as a retail investor enjoys investing but for a long time has only managed to invest in a single company due to insufficient savings. However, Timothy has suddenly inherited some money from his grandmother and can finally invest more money to create diversified portfolio. How would diversification benefit Timothy? Explain in the context of Portfolio Theory.

Posted Date: May 11, 2024 05:03 AM

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Timothy as a retail investor enjoys investing but for a long time has only managed to invest

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Diversification would greatly benefit Timothy by reducing the overall risk of his investment portfol... View the full answer

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