Meaning PRINCIPLE OF DIVERSIFICATION: That portfolios of different sorts of assets differently correlated with one another will have negligible unsystematic risk. In other words, unsystematic risks disappear in diversified portfolios, and only systematic risks persist, those related to particular assets
More terms such as Principle of diversification in Dictionary P.
- Definition Purchasing Power Parity:
- Examples The notion that the ratio between domestic and foreign price levels should equal the equilibrium exchange rate between domestic and foreign currencies principle of diversification definition.
- Definition Pension Benefit Guaranty Corporation (PBGC):
- Examples A federal agency that insures the vested benefits of pension plan participants (established in 1974 by the ERISA legislation principle of diversification explain.
- Definition Primary Dealer:
- Examples Usually refers to the select list of securities firms that are authorized to deal in new issues of government bonds principle of diversification what is.
- Definition Pure Discount Bond:
- Examples A bond that will make only one payment of principal and interest. Also called a zero-coupon bond or a single-payment bond principle of diversification meaning.
- Definition Pot Is Clean:
- Examples Phrase used when managing underwriter has sold the entire pot principle of diversification abbreviation.
