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Importance of Diversification in Portfolio Theory and Its Role in Formulating Practical Investment Strategies Essay Preview: Importance of Diversification in Portfolio Theory and Its Role in Formulating Practical Investment Strategies Report this essay Introduction to Financial Markets (2016 – 2017) [SS2-SEM2]—1600 Words20/FEB/2017 Topic: Explain the importance of diversification in Portfolio Theory and its role in formulating.