Meaning NAIVE DIVERSIFICATION: A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered. In contrast, mathematical programming can be used to select the best possible investment weights. Related: Markowitz diversification
More terms such as Naive diversification in Dictionary N.
- Definition No-Action Letter:
- Examples A letter from the Securities and Exchange Commission agreeing that the commission will take no civil or criminal action against a party, regarding a specific activity naive diversification definition.
- Definition National Securities Clearing Corporation (NSCC):
- Examples A clearing corporation that facilitates the settlement of accounts among brokerage firms, exchanges, and other clearing corporations naive diversification explain.
- Definition Normal Annuity Form:
- Examples The manner in which retirement benefits are paid out naive diversification what is.
- Definition Nikkei Stock Average:
- Examples Applies mainly to international equities. Price-weighted average of 225 stocks of the first section of the Tokyo Stock Exchange started on May 16, 1949. Japanese equivalent of the U.S. Dow naive diversification meaning.
- Definition Nonclearing Member:
- Examples An exchange member firm that is not able to clear transactions, and must pay another member firm to carry out its clearing operations naive diversification abbreviation.
