what are the reason of overdiversification

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics
Section: Chapter Questions
Problem 16QP
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what are the reason of overdiversification

 

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Diversification:

It is a risk management method under which a mixed variety of investments are made. Or investing in diversified units is termed as diversification. However, if one unit fails to give profit then this loss can be covered by other invested units.

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