Diversification: Difference between revisions
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imported>Doug Williamson m (Spacing) |
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''Risk management.'' | ''Risk management.'' | ||
The process of spreading risk such that no single event can have a catastrophic effect. | The process of spreading risk such that no single event can have a catastrophic effect. | ||
Often referred to as 'Don't put all your eggs in the same basket'. | Often referred to as 'Don't put all your eggs in the same basket'. | ||
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* [[Portfolio]] | * [[Portfolio]] | ||
* [[Specific risk]] | * [[Specific risk]] | ||
Revision as of 20:45, 11 August 2013
Risk management.
The process of spreading risk such that no single event can have a catastrophic effect.
Often referred to as 'Don't put all your eggs in the same basket'.
In corporate finance the term is often used to mean the process of ensuring that an investment portfolio is constructed such that all possible specific risk (diversifiable risk) is eliminated.
