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2 April, 14:08

Why wouldn't investors invest all of their money in software companies instead of in less profitable companies? (Focus on risk and return.)

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  1. 2 April, 14:13
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    Answer and Explanation:

    Risk and return are equal companions if we invest in a market with a higher risk that's mean this type of market provides a higher return.

    If Investors invest their whole money in the high-risk market for there high return, may they get a huge loss.

    So, The exposure must be balanced by investments in diversified markets with different risk weights.
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