Diversification: Difference between revisions
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imported>Doug Williamson (Linked to The Treasurers Handbook - Cash in the new post-crisis world) |
imported>Doug Williamson (Note that diversification is a form of risk reduction.) |
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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. | ||
Diversification is a form of risk reduction. | |||
Revision as of 18:25, 11 April 2015
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.
Diversification is a form of risk reduction.
