Word Count : 492

---

Diversification in equity markets refers to the process of spreading investments across different assets, sectors, or geographies to reduce overall portfolio risk. The primary objective of diversification is to minimize the impact of poor performance of any single investment on the total portfolio returns. Portfolio risk mainly consists of two components: systematic risk (market-related and unavoidable) and unsystematic risk (specific to a company or sector, which can be reduced through diversification). While systematic risk cannot be eliminated, diversification is highly effective in ______ _____ _____ ____ __________ __________ ___ _________ ________ __________ ____.
__________ _______ ______ _____ ___ ______ _________ __________ ________ ___ ________.
___ _________ ______ ___ ________.
____ _________ _______ _____ _____ ______ _______ _____ _______ ___.
_________ ____ _____ _________ ___ ______ ___ _____ __________ ____ ______.
_____ ___ ___ _______ _____ _____ ___ _________.
_____ _______ ___ ___ ___ _____ ________ ______ _________ ____ __________ _______.
_______ ______ ___ ________ ______ ______ ________.
________ _____ ____ _____ ___ _____ ____ __________ ________.
____ ____ ___ ________ _____ _______ ______ ____ ____ _____ ___.
_________ _______ ______ ____ ___ ___.
________ ____ _________ _______ ____ __________ _________.
________ ____ __________ __________ __________ _____ __________ _____ _____.
_____ ________ _____ ____ __________.
______ ____ ___ ___ __________ ______ _________ ________.
____ ____ ________ ___ ____ ____ _____ _________ ___.
_______ ____ ____ __________ _____ _________ __________ ________ ________ ___.
___ ______ ____ ____ __________ _____.
______ ________ _________ ___ _______ ____ _________ _______ _______ _____ __________ __________.
____ __________ _______ ___ __________.
___ ___ _____ ___ _____ _______ __________.
____ ________ _________ ____ _______ __________ _______ _____.
_________ _____ ____ ___ _________ _____.
_________ ________ _________ ______ _______ ____ ______ ________ ______ _____ ______.
___ __________ ____ _________ _______ ________ ___ ___ __________ ____ _______.
__________ ___ _________ _________ __________ __________ ______ _______ _________ ____ ______ _________.
______ _________ ______ _______ ___ ___ ______.
___ _____ ____ ______ _________ ____ ____.
_______ ___ _______ _____ _____ _______ _____ _________ ______ ___ ______.
_________ ________ ____ __________ ____ _____ _____ ____ _____.
________ ______ _______ ______ __________ __________ ________.
_________ _____ ___ _________ ________.
___ ______ __________ ________ ____ ____ _______ _____ _______ _____ __________.
________ ____ _________ ______ ________.
______ ______ ________ _________ ________ ______ ________ ___ ______ ____.
__________ ____ _____ _____ ________ _________.
________ ______ _____ ________ ________ _____.
______ _____ _____ _______ ________ _______.
____ ________ __________ ________ ______ __________ ______.
_______ __________ _____ ______ __________.
___ ____ ____ _______ _____ _______ __________ ______ ____ _________.
_______ _____ ____ ________ __________ _________ ______ ______ __________ ______ ____ ___.
_______ _________ _____ _________ _________ ___.
_________ ___ ___ _____ ___ _______ _______ ____.
_____ _______ _____ _____ ____ ___ _________ ________ ___ ___ __________.
________ _________ _______ ______ ____ ________.
___ ________ ______ _____ ______ _______ ______ _________ ______ ___.
_______ ___ _________ ____ ________ _____ ____ ________.
____ ____ __________ ____ _________ ____ ________ ____ _________.
___.
Get Full Answer on WhatsApp