The advantage of diversification is that it broadens your exposure to market swings. The principle is that one sector (or stock) may devalue, but not all sectors will devalue. In the long term, most sectors tend to experience growth, so the total portfolio value of a diversified account should gradually grow.
The disadvantage of diversification is that a portfolio focused on a single sector or stock can have some super growth, naturally this comes with increased risk. Another disadvantage is that diversification can be difficult for small investors. (It doesn't need to be, but it can be.)
advantages of foreign trade multiplier
advantages: they are willing to fight and the usually have better education disadvantages: there is a smaller amount ofsoldiers, which is fine in peacetime, but when there is a war going on, it can hurt its army.
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were on earth are the questions
The distribution of advantages and disadvantages within a society
disadvantages- unlikely economic benefits will be generated for the target or the bidder advantages- diversification
advantages 1. more money 2.more jobs 3.tourism disadvantages 1.no local support 2.misuse of funds 3.imbalance of trade
what are the major advantages of a totalitrian?
There are a number of disadvantages of diversification. Some of them include overuse of resources, it may affect level of production and so much more.
to maximize the profit
what are the major advantage and disadvantage of concentric diversification?
The advantages and disadvantages of conglomerate diversification are as follows: Advantages of conglomerate diversification a. Risk spreading ? entering new products into new markets offers protection against failure of current products and markets. b. High profit opportunities ? Ability to move into high growth profitable industries especially important if current industry is in decline. c. Escape ? from the present business if competition is too hot! d. Better access to capital markets. Disadvantages of conglomerate diversification a. The dilution of shareholders earnings if diversification is into growth industries with high P/E ratios. b. Lack of a common identity and purpose in a conglomerate organization. A conglomerate will be successful only if it has high quality of management and financial ability at head office where diverse operations are brought together. c. Failure in one business will drag down the rest. d. Lack of management experience..
Advantages and Disadvantages of equity
advantages and disadvantages
there are no advantages or disadvantages
advantages and disadvantages of recession
what are the disadvantages and advantages of antipyretic