Two paragraph as a replay to discussion
write a paragraph as a replay to each classmate post discuss their post for the topic ( Portfolio Theory )
the classmate post is in attach
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Discussion Response
Student One Response
Thank you for your post. Indeed diversification of investment could be a significant source of reduction in the risk In a particular environment. In my opinion, this works in helping the business by reducing the chances that shocks that could affect one area of the business could have much significance through a ripple effect to the rest of the firm. When a company has multiple assets through various investments, then the exclusivity of the investments reduces the chances of economic shocks that affect one asset affecting the other parts of the company.
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