September 2023 Explain the relationship between risk and return How does diversification reduce risk

Explain the relationship between risk and return. 

How does diversification reduce risk? Give an example of how diversification can reduce risk in a portfolio.

 

Remember that this is a corporate finance class, not a personal finance class.  Substantive responses will focus on corporate or large investors, investment managers and similar situations not personal investments such as 401ks, personal portfolios etc.  

 

*** Minimum 300 words*** Unplagiariszed