One advantage of portfolio diversification methods is that they are applicable to all FIs, regardless of their size.

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Portfolio diversification methods can be applied by all financial institutions, regardless of their size. Diversification is a widely accepted risk management strategy that involves spreading investments across different asset categories, industries, and geographical regions to minimize the impact of any single investment on the overall portfolio performance. This strategy is relevant to all FIs as it helps to reduce their exposure to various risks, including credit risk, interest rate risk, foreign exchange risk, and market risk.

One Advantage of Portfolio Diversification Methods Is That They Are