Diversification is a strategy used to reduce investment risk by adding assets with low or negative correlation to an existing portfolio, such as adding bonds to a portfolio heavily invested in the technology sector.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (5)

• investment risk concept
• bonds concept
• technology sector concept
• diversification concept
• portfolio concept