Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?

Micro Economics

Q1: Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?

Why do most investors hold diversified portfolios?

Q2: Explain the benefits derived from investing in deep discount bonds.

Q3: Explain how to manage bond portfolios and what are the portfolio management strategies.

 

Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?
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