Home >  Term: magic of diversification
magic of diversification

The effective reduction of risk (variance) of a portfolio, achieved without reduction to expected returns through the combination of assets with low or negative correlations (covariances). Related: Markowitz diversification.

0 0

Creator

  • Jessehe
  •  (V.I.P) 32013 points
  • 40.13% positive feedback
© 2024 CSOFT International, Ltd.