Examples of diversification in the following topics:
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- The compensation adjustment for holding an asset of a given risk profile can be further enhanced through asset diversification.
- However, the compensation adjustment for holding an asset of a given risk profile can be further enhanced through asset diversification.
- Through diversification, an investor's entire portfolio can perform better than its worst-performing asset.
- It's important to note that diversification does not remove all of the risk from the portfolio.
- Diversification can reduce the risk of any single asset, but there will still be systematic risk (or undiversifiable risk).
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- In general, diversification can reduce risk without negatively impacting expected return.
- We have talked about diversification previously, and this section will follow from that.
- Diversification comes with a cost associated with it, and some might point out that it is possible to over-diversify.
- In 1977 Elton and Gruber worked out an empirical example of the gains from diversification.
- It can be seen that most of the gains from diversification come for n≤30.
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- It is difficult to reduce with diversification.
- The idea of eliminating risk by spreading investments across pools of underlying stocks and bonds is called "diversification. " A diversified portfolio spreads investments across all asset classes with a weighting system that takes time frame and risk tolerance into account.
- In our example. we talked about diversifying away the risks of slow chair lifts but in reality, there are many more aspects to diversification.
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- Systematic risk is intrinsic to the market, and thusly diversification has no effect on its presence in investments.
- Diversification is a technique for reducing risk that relies on the lack of a tight positive relationship among the returns of various types of assets.
- Thus, the role of diversification is to narrow the range of possible outcomes.
- This risk is present regardless of the amount of diversification undertaken by an investor.
- Diversification theory says that the only risk that earns a risk premium is that which can't be diversified away.
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- Diversification - This strategy creates completely new opportunities for the company by creating new products and new markets.
- Each strategy has a different level of risk, with market penetration having the lowest risk and diversification having the highest risk .
- Diversification seeks to increase profitability through greater sales volume obtained from new products and new markets.
- Ansoff pointed out that a diversification strategy stands apart from the other three strategies.
- Because of the high risk involved with diversification, many marketing experts believe a company shouldn't attempt diversification unless there is a high return on investment and their SWOT analysis makes them feel that they have a chance of succeeding in the new market with a new product.
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- Theories that attempt to explain why the Cambrian explosion happened must be able to provide valid reasons for the massive animal diversification, as well as explain why it happened when it did.
- Unresolved questions about the animal diversification that took place during the Cambrian period remain.
- Furthermore, the vast diversification of animal species that appears to have begun during the Cambrian period continued well into the following Ordovician period.
- Despite some of these arguments, most scientists agree that the Cambrian period marked a time of impressively-rapid animal evolution and diversification that is unmatched elsewhere during history.
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- Diversification – A corporate strategy in which a company acquires or establishes a business other than that of its current product.
- Diversification can occur either at the business-unit level or at the corporate level.
- At the business-unit level, diversification is most likely to involve expansion into a new segment of an industry in which the business already competes.
- Distinguish between the varying integrations and diversifications that allow businesses to pursue strategic growth
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- Evolution, the unifying theory of biology, describes a mechanism for the change and diversification of species over time.
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- A fundamental justification for asset allocation (or Modern Portfolio Theory) is the notion that different asset classes offer returns that are not perfectly correlated, hence diversification reduces the overall risk in terms of the variability of returns for a given level of expected return.
- Asset diversification has been described as "the only free lunch you will find in the investment game".
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