Monday 24th October 2016                 Change text size:

Investment term of the day: diversification

dictionary By doctor-a via stock.xchng

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

There are currently no comments.

Register with Blue and Green

To leave a comment on this article, fill in your details below to register, alternatively if you are already registered you can login here

Subscribe for our Newsletter

Time limit is exhausted. Please reload CAPTCHA.

A password will be e-mailed to you.