Unformatted text preview: suggests that he would face a risk of a lack of diversification and recommends a managed share fund that invests in the top 100 companies on the share market. Discuss the reasons why Joe may prefer the investment into five companies instead of the managed fund. What is your opinion of Joe’s diversification preference? 4. What do you think are the main differences between active and passive investment? 5. Read Malkiel’s article – see under General information....
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- Three '11
- financial advisers, main assets classes, diversification preference