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Finance ABC
33. Diversification and Modern Portfolio Theory
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Welcome back to Finance ABC, where we break down the big ideas in finance into simple, relatable concepts. Today, we’re diving into something you might have heard about but maybe aren’t entirely sure how it works: diversification. And we're going to take it one step further by talking about Modern Portfolio Theory, or MPT, which is a key framework in understanding why diversification works and how it can help investors manage risk while seeking returns.
