Definition for Difference between revisions of "Well-diversified portfolio"

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(Created page with "A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk o...")
 
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Latest revision as of 11:33, 29 June 2017

A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been diversified out of the portfolio.