CU Management Diversification Investor Risk & Opportunity Cost of Capital Discussion
I’m trying to learn for my Management class and I’m stuck. Can you help?
1) Please describe the meaning of diversification. How does diversification reduce risk for the investor?
2) What is the opportunity cost of capital? How can a company measure opportunity cost of capital for a project that is considered to have average risk?
Cite your sources. Do not copy. Write in essay format not in bulleted, numbered or other list format.
Reply to two classmates’ posting in a paragraph of at least five sentences by asking questions, reflecting on your own experience, challenging assumptions, pointing out something new you learned, offering suggestions.
It is important that you use your own words, that you cite your sources, that you comply with the instructions regarding length of your post and that you reply to two classmates in a substantive way (not ‘nice post’ or the like). Your goal is to help your colleagues write better. Do not use spinbot or other word replacement software.