Explanation: Diversification is a risk management strategy that aims to reduce investment risk by spreading out investments in a variety of assets (or asset classes, e.g. shares, bonds, commodities, real properties etc.). People often think investment diversification performs magic - invoke it, and it will prevent portfolio losses.
Contents
1) To what extent do you think diversification can reduce market risk?
2) Do you think diversification is always a viable option for organisations, and are you using it in your organisation (or personal investment)?
3) When do you think diversification will fail? Check some of the market indices (of the same or different asset classes) at https://finance.yahoo.com/world-indices (from Feb 2020 to the present, the lists of market indices can be found at Stock market indices, bond market indices, commodity price indices). Do you think holding a diversified portfolio will immune one from portfolio losses (what about during the Global Financial Crisis period of 2007-08)?

Total Number of Words (inclusive of the questions): 336 (1.12 pages)