Diversification Purpose Provides the mathematical foundations and practical frameworks for building diversified portfolios. Covers portfolio variance, correlation effects, the efficient frontier, minimum variance portfolios, risk contributions, and factor-based diversification. Explains why diversification reduces risk and where it fails. Layer 4 — Portfolio Construction Direction both When to Use - Understanding why and how diversification reduces portfolio risk - Computing portfolio variance and volatility for multi-asset portfolios - Constructing the efficient frontier or minimum variance…