Risk, return and portfolios in general

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Risk, return, and portfolios in general. Technology stocks in particular.

Suppose that you have a friend who likes to invest in technology stocks. "Sure, they are risky," he says, "but the technology sector can go up over 50% in a year. You will never achieve that kind of return with a diversified portfolio." How would you respond to such a comment?

Reference no: EM1324579

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