Meaning MAGIC OF DIVERSIFICATION: The effective reduction of risk (variance) of a portfolio, achieved without reduction to expected returns through the combination of assets with low or negative correlations (covariances). Related: Markowitz diversification
More terms such as Magic of diversification in Dictionary M.
- Definition Mob Spread:
- Examples The yield spread between a tax-free municipal bond and a Treasury bond with the same maturity magic of diversification definition.
- Definition Markdown:
- Examples subtracted from the selling price of securities when they are sold to a dealer in the OTC market. Also, the discounted price of municipal bonds after the market has shown little interest in the issue magic of diversification explain.
- Definition Multiple-Discriminant Analysis (MDA):
- Examples Statistical technique for distinguishing between two groups on the basis of their observed characteristics magic of diversification what is.
- Definition May Expand:
- Examples Used in the context of general equities. Warning that the size of the order/total may be increased. See: more behind it magic of diversification meaning.
- Definition Monopoly:
- Examples characterized by absolute control of all sales and distribution in the market by one firm, due to some barrier to entry of other firms, allowing the firm to sell at a higher price than the societally magic of diversification abbreviation.
