Diversification: Difference between revisions
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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. | 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. | ||
== See also == | == See also == | ||
* [[Portfolio]] | * [[Portfolio]] | ||
* [[Specific risk]] | * [[Specific risk]] | ||
[[Category:Managing_Risk]] | |||
Revision as of 14:07, 9 October 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.
