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    What are some of the most important reasons for diversifying one's portfolio internationally and across asset classes?

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    The most important reason for portfolio diversification is to minimize risk. It is said that a good diversified portfolio reduces about 70% of investment risk. The international economics are certainly different from domestic economics. For example, the U.S. is currently facing an economic slowdown and possible recession, but China and some other ...

    Solution Summary

    In three paragraphs, the concerts of diversification and risk management are discusses including examples of how the diversification can work.