Finance
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Boundless Finance
Introduction to Risk and Return
Finance Textbooks Boundless Finance Introduction to Risk and Return
Finance Textbooks Boundless Finance
Finance Textbooks
Finance

Section 6

Diversification

Book Version 3
By Boundless
Boundless Finance
Finance
by Boundless
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2 concepts
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Impact of Diversification on Risk and Return: Unsystematic Risk

In general, diversification can reduce risk without negatively impacting expected return.

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Impact of Diversification on Risk and Return: Systematic Risk

Systematic risk is intrinsic to the market, and thusly diversification has no effect on its presence in investments.

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