Asked by Clayton Scheutzow on May 06, 2024
Verified
Provide a definition for principle of diversification.
Principle of Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset's volatility.
- Comprehend the characteristics of both diversified and non-diversified risks within the context of portfolio management.
Verified Answer
BA
Brogan AnderssonMay 09, 2024
Final Answer :
Principle stating that spreading an investment across a number of assets eliminates some, but not all, of the risk.
Learning Objectives
- Comprehend the characteristics of both diversified and non-diversified risks within the context of portfolio management.
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