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"
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Nahara Co.
9y ago#1If 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).
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