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Investment term of the day: diversification

Published

9 years ago

on

May 19, 2014

By

Blue & Green Tomorrow

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

Photo: doctor-a via Freeimages

Related Topics:diversification Investment portfolio risk term

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