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Would the principle of diversification assure us that diversifying a U.S. portfolio

Would the principle of diversification assure us that diversifying a U.S. portfolio

2. Would the principle of diversification assure us that diversifying a U.S. portfolio internationally would reduce the standard deviation? Explain.

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2. Would the principle of diversification assure us that diversifying a U.S. portfolio internationally would reduce the standard deviation? Explain.

 

 

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In finance, standard deviation is used to measure an investments volatility. Also called the historical volatility, this measure is used by investors as a gauge of the amount of expected volatility. Hence it is true that the principle of diversification assure us that diversifying a U.S. portfolio internationally would reduce the standard deviation (Burik & Ennis, 1990)….

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