The principle of diversification posits that combining assets with different risk and return characteristics allows the negative performance of some investments to be offset by the positive performance of others, resulting in a more stable and less volatile portfolio.

Authors

• Person: Not available Organization: CAUL
  Topic 2: The Risk and Return Trade Off in Financial Decision Making

Sources

• Topic 2: The Risk and Return Trade Off in Financial Decision Making oercollective.caul.edu.au CAUL via serper

Referenced by nodes (1)

• diversification concept