Diversification of one's portfolio (financial management) comes from having those monies placed amoung different asset classes such as stocks (equities), fixed income (bonds), real estate, cash, and alternative investments (hedge funds, collectables, etc.). These assets should also be diversified amoungst there respective classes. Stocks should be broken down to large cap, mid cap, and small cap. Fixed income should be broken down to corporate bonds, governmant bonds, and international bonds. Alternatives should be a smaller slice and all of these asset classes should be broken down based on one's risk tollerance and time horizon. Meaning that a 25 year old working professional will generally be allocated higher in equities than a 65 year old retiree. If you're looking for an easy way to accomplish all of thee above you may want to look at well diversified portfolio of ETFs or consult a good financial advisor for guidance.
Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.
Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.
Related diversification occurs when a company expands its existing products or markets.
Diversification of risk means reduction of risk. Merely reducing risk (and thereby reducing return proportionately) doesn't amount to diversification. Diversification in its true sense represents systematic reduction of risk in such a manner that return per unit of risk increases. By K S JOLLY
moving from what you were offering to a total new product, for example,if you were manufacturing clothes and then you move to food industries is a good example of unrelated diversification.
Generally, diversification helps reduce the overall credit risk exposure for financial institutions by reducing their overall expected chargeoff rates.
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Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries and other categories. It aims to maximize return by investing in different areas that would each react differently to the same event. Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.
Schwab is a leading provider of investment services including online investing, financial advice and banking solutions. They will invest your money with a diversification that suits your future financial needs.
in the context of networks , the term ________________usually refers to a personal computer connected to a network .
Concentric diversification occurs when a firm adds related products or markets. The goal of such diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.
Different diversification rates for two clades of animals.
Different diversification rates for two clades of animals
Different diversification rates for two clades of animals.
composite risk managent process
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Concentric diversification occurs when a firm adds related products or markets. The goal of such diversification is to achieve strategic fit. Strategic fit allows an organization to achieve synergy. In essence, synergy is the ability of two or more parts of an organization to achieve greater total effectiveness together than would be experienced if the efforts of the independent parts were summed. Conglomerate diversification occurs when a firm diversifies into areas that are unrelated to its current line of business. Synergy may result through the application of management expertise or financial resources, but the primary purpose of conglomerate diversification is improved profitability of the acquiring firm. Little, if any, concern is given to achieving marketing or production synergy with conglomerate diversification.