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kondor19780726 [428]
3 years ago
6

Why is too much diversification considered a negative thing when dealing with mutual funds

Mathematics
2 answers:
amid [387]3 years ago
6 0
<span>b.<span>When there is too much diversification in a mutual fund, great success in a single stock doesn’t make much of a difference in the overall progress of the fund. </span></span>
dedylja [7]3 years ago
3 0
<span>When there is too much diversification in a mutual fund, great success in a single stock doesn’t make much of a difference in the overall progress of the fund. 
</span>
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Step-by-step explanation:

Assume this is function is a straight line, consider the equation of the straight line: y=mx + c

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m = \frac{y_1 - y_2}{x_1 - x_2}\\\\m = \frac{1-(-1)}{2-6}\\\\m=\frac{2}{-4} \\\\m=- \frac{1}{2}

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y =mx+c\\y = - \frac{1}{2} x + c\\\\

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y = -\frac{1}{2}x+c\\\\0 = -\frac{1}{2} \times 4+c\\\\0 = -2 + c\\\\c=2\\\\

Substitute this value of c in the equation to get the function:

y = -\frac{1}{2}x + 2

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3 years ago
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4 years ago
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