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Markowitz diversification |
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Definition of Markowitz diversificationMarkowitz diversificationA strategy that seeks to combine assets a portfolio with returns that are less than
Related Terms:Magic of diversificationThe effective reduction of risk (variance) of a portfolio, achieved without reduction Naive diversificationA strategy whereby an investor simply invests in a number of different assets and DiversificationDividing investment funds among a variety of securities with different risk, reward, and DiversificationThe process of spreading a portfolio over many investments to diversificationStrategy designed to reduce risk by spreading the portfolio across many investments. DiversificationInvesting so that all your eggs are not in the same basket. By spreading your investments over different kinds of investments, you cushion your portfolio against sudden swings in any one area. Segregated equity funds have become a popular and secure way for average investors to get the benefits of greater diversification. diversificationAn investment technique intended to minimize risk by utilizing a wide variety of investments within a portfolio. In a diversified portfolio, a decline in the value of one investment, for example, should be offset by the strength of other investments. Efficient diversificationThe organizing principle of modern portfolio theory, which maintains that any riskaverse International diversificationThe attempt to reduce risk by investing in the more than one nation. By Liquidity diversificationInvesting in a variety of maturities to reduce the price risk to which holding long Markowitz efficient frontierThe graphical depiction of the markowitz efficient set of portfolios Markowitz efficient portfolioAlso called a mean-variance efficient portfolio, a portfolio that has the highest Markowitz efficient set of portfoliosThe collection of all efficient portfolios, graphically referred to as the Markowitz modelA model for selecting an optimum investment portfolio, Portfolio DiversificationSee diversification Principal of diversificationHighly diversified portfolios will have negligible unsystematic risk. In other
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