Homework answers / question archive / Topic Question/Issue: Based only on the material found in our textbook, please answer the following questions: (1) Why is diversification considered “good” by most professionals? Can you think of a situation where diversification might be “bad”? Please discuss

Topic Question/Issue: Based only on the material found in our textbook, please answer the following questions: (1) Why is diversification considered “good” by most professionals? Can you think of a situation where diversification might be “bad”? Please discuss

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Topic Question/Issue: Based only on the material found in our textbook, please answer the following questions:

(1) Why is diversification considered “good” by most professionals? Can you think of a situation where diversification might be “bad”? Please discuss.

(2) Pick either “passive” or “active” investment management. Which investment style do you personally prefer? Why?