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Username: LuckyWoman

Rating:
Guru Stars

Asked to: Jun Wang

Date Created: 17 Jul 2018
Category 28
Tag Financial
Question What is 'Diversification'?
Advice from Guru
Hello LuckyWoman,

Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio constructed of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio.

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