Abstract
A credit crisis was created when several investment banks collapsed, acquired, and left the investment banking industry due to internal inancial trouble in 2007-2008. On October 3, 2008, the Troubled Asset Relief Program (TAR P) was signed into law to strengthen the inancial sector and avoid the effects of a recession. This paper examines whether the investment portfolio diversification is beneficial to both corporate and individual investors. International diversification is prudent for both individual and corporate investors due to its ability to maximize returns and lower risk. The paper concludes that both individual and corporate investors should engage in international diversification and there are no set rules or strategies to generate profits. Practicing prudence will keep the portfolio safe from all possible risks.
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