FIN 571 / DQ #1

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