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Diversification is a term often used in discussions of investment or risk reduction. Remember that risk has many components; company, industry, interest rate, and reinvestment are a few examples. There are both diversifiable and non-diversifiable risks in any investment decision. Write a one page half paper that describes why the need to diversify poses a unique problem for business owners. In your paper, consider the following questions:

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  • Can they diversify? How?
  • What are the biggest risks?
  • How can business owners protect themselves?
  • No copying please and if you use references list them

 
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