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    Risk management-portfolio approach and insurance

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    Explain the portfolio approach to risk management.
    Explain the use of insurance in managing risk.

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    Question
    Risk management
    Explain the portfolio approach to risk management.
    Explain the use of insurance in managing risk.

    Answer

    Portfolio approach to risk management

    A portfolio is simply a combination of investments. The portfolio approach to risk management states that a rational decision maker should not invest all of his monies in one security instead he should make a combination of securities with different risks and returns so that if one security is going down, the loss ...

    Solution Summary

    -Portfolio approach to risk management
    -Use of insurance in managing risk

    $2.19

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