Question: 1.Answer the following questions regarding diversification: a.What is the diversification principle? b.Explain why diversifying between assets with low or no correlation reduce overall risk? c.What

1.Answer the following questions regarding diversification:

a.What is the diversification principle?

b.Explain why diversifying between assets with low or no correlation reduce overall risk?

c.What are the insurance benefits of diversification of a portfolio?

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