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 Participating Preferred Stock:
- Examples Preferred stock that provides the holder with a specified dividend plus the right to additional earnings under specified conditions principle of diversification definition.
- Definition Profit Margin:
- Examples profitability. The ratio of earnings available to stockholders to net sales. Determined by dividing net income by revenue for the same 12-month period. Result is shown as a percentage. Also known as principle of diversification explain.
- Definition Perquisites:
- Examples Personal benefits, including direct benefits, such as the use of a firm car or expense account for personal business, and indirect benefits, such as up-to-date office decoration principle of diversification what is.
- Definition Public Utility Holding Company Act Of 1935:
- Examples intended to eliminate many holding company abuses by reorganizing the financial structures of holding companies in the gas and electric utility industries and regulating their debt and dividend principle of diversification meaning.
- Definition Phillips Curve:
- Examples supposedly shows the relationship between inflation and unemployment. It is conjectured that there is a simple trade-off between inflation and unemployment (high inflation and low unemployment, and principle of diversification abbreviation.
