4 what is the link between asset diversification and the liq
4- what is the link between asset diversification and the liquidity of the deposit contracts?
4- what is the link between asset diversification and the liquidity of the deposit contracts?
Solution
Diversification- It is the art of diversify the risk so that return can be balanced. Diversification means, investing the money into different asset class.
It makes the FI able to analyze the risk and return of a portfolio so that promise can be fulfilled to provide highly liquid claims with very less price risk.
