Connect with us

Features

Investment term of the day: diversification

Published

10 years ago

on

Diversification is a risk management technique that mixes a wide variety of investments within a portfolio.

The theory is that the portfolio will have less risk than the weighted average risk of its constituent assets because it will smooth out unsystematic risk events.

Investopedia definition

Wikipedia page

Photo: doctor-a via Freeimages

Related Topics:
Continue Reading
Advertisement

Trending