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Portfolio diversification is an important subject for investors. Exchange-traded index funds make it easy for investors to achieve sector and global portfolio diversification. This book explains the risks, returns, and portfolio diversification benefits of sector and global investments. The book consists of six parts and nineteen chapters. In the introductory first chapter in Part I, the authors explain the basics of risk, return, and portfolio diversification. The three chapters in Part II explain the risks, returns, and portfolio diversification benefits of investing in sector index funds. The three chapters in Part III explain the risks, returns, and portfolio diversification benefits of investing in global index funds. The five chapters in Part IV provide empirical evidence for the benefits of global portfolio diversification. The five chapters in Part V provide information regarding the characteristics of firms in different industries and countries. The two chapters in Part VI explain how global stock markets and individual company stocks are affected by stock market crashes.

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