Question: It is commonly accepted that there are gains from adding securities to an investment portfolio. Explain what is meant by this statement. (your answer should

It is commonly accepted that there are gains from adding securities to an investment portfolio. Explain what is meant by this statement. (your answer should include a discussion and example regarding systematic and non systematic risk as well as an indication of the optimal number of assets to be included within a portfolio in theory and in practice)

5 marks

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