What steps can a card business take to diversify its portfolio, business and finance homework help

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Ernqlsbevggborbire

Business Finance

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Must be 3-4 Pages APA style.

HowRu, 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 season. For this assignment, please complete the following:

  • What steps can this company take to diversify its portfolio?
  • Define diversification and its necessity in risk management.
  • Discuss at least 5 steps to diversify the card business.
  • Please give at least 6 suggestions of how and where funds can be allocated for new investments.

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Running Headers: DIVERSIFICATION

1

Diversifying The Card Business' Portfolio

Student's name

Date

DIVERSIFICATION

2

The company should willing to adapt and modify their investment portfolio to try to
maximize the market fluctuations. In this situation of their company, an investment strategy
should be envisaged to lessen potential losses. For this, is it very convenient to diversify the
investments through a previous financial planning that contains investment funds, stocks and
fixed income products among others.

Three steps to diversify the company's portfolio:

1. By different asset classes
The investment portfolio can be combined different asset classes, such as capitalization
assets, debt, and currencies. Just always remember that the proportion of assets to
choose will always depend on the investor's profile, that is, on how risk averse, the
investment horizon and the reasons for their investment.
2. With different titles
When the company has chosen the asset class in which they will invest, they must
diversify into the securities. For example, shares of the different companies, of different
levels of liquidity and risk; Bonds with different maturity dates; Mutual funds with a
varied investment strategy or targeting different types...


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