Question: Please address the following areas for this task: Diversification by asset class, sector, region and currency Spreading risk and balancing risk with return The benefits
Please address the following areas for this task:
Diversification by asset class, sector, region and currency
Spreading risk and balancing risk with return
The benefits of the mutual fund mechanism
Investor profiles
Macro-economic factors
Explain the relationship between risk and return and describe the benefits of a portfolio with a given risk profile.
Understand the concepts of risky portfolios, and the concept of diversification of risky portfolios.
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