Define diversification and necessity in risk management


Problem:

A private card business and its subsidiary, have a 14% share of the greeting card market. The card business is subject to seasonal cycles, with sales being highest during the holiday seasons. For this assignment, please complete the following:

1. What steps can this company take to diversify its portfolio?

2. Define diversification and its necessity in risk management.

3. Discuss at least 5 steps to diversify the card business.

4. Please give at least 6 suggestions of how and where funds can be allocated for new investments.

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Finance Basics: Define diversification and necessity in risk management
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