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Questions and Answers
What is the primary goal of diversification in trading and investing?
How does diversification help in risk reduction?
What is the benefit of having a diversified portfolio in terms of returns?
Which of the following strategies is an example of geographic diversification?
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What is a common pitfall of over-diversification?
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Why is it important to understand the correlation between different assets in a diversified portfolio?
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What is the purpose of rebalancing a diversified portfolio?
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How does sector diversification within an asset class help in risk management?
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What is time diversification and how does it reduce risk?
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What is a key benefit of incorporating different investment styles such as growth, value, and income investing?
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