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To maximize profits, banks attempt to diversify. what does this mean?

User Lordcheeto
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Answer: To maximize profits, businesses tend to diversify. Diversification means extending business operations into different markets, usually that are not related to the existing felid of the business.

This helps to reduce the portfolio risk. It gives the banks a higher rate of return, not only this it also helps to expand the bank’s market share. In addition to this it adds to the Good Portfolio Performance during Market Downturns


User Div
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