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Thank you for visiting Respond to each part using complete sentences Part I Describe an example of a somewhat diverse portfolio You must include at least three investments and. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!

Respond to each part using complete sentences.

Part I: Describe an example of a somewhat diverse portfolio. You must include at least three investments and the percentage of distribution for each.

Part II: Explain why this portfolio is somewhat diverse.

Part III: Explain whether this portfolio is an aggressive, conservative, or moderate portfolio and why.

Answer :

1. Consider an investment portfolio where 40% is invested in bonds, 30% in Gold and 30% in stocks of a developing company.

2. There is some diversity in the portfolio. This is due to the investor's investments in a variety of different assets, which assures that he decreases the investment's variance or risk. The investment's volatility has been greatly decreased by diversification.

3. The portfolio is conservative. The main investment has been allocated to common stocks in a young company, which entails significant risks. The capital has only been partially invested in risk-free assets. Thus, his hazards are reduced.

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