- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Sir i was doing this question and in the answer to part (a) why risk divesification may be benficial…… i couldnt get the examiner comments that “If the sovereign funds have their entire investement in the holding company and not diversified itself than its good to be diversified”
If I invest all of my money in a company that is well-diversified, then effectively I am well-diversified.
If I invest all my money in a company that is not diversified, then I am not diversified (and it would be more sensible for me to diversify my investments rather than invest it all in the one company).
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.