Section 6
Diversification
Book
Version 3
By Boundless
By Boundless
Boundless Finance
Finance
by Boundless
2 concepts
![Thumbnail](../../../../../../figures.boundless-cdn.com/12181/square/diversification2.jpg)
Impact of Diversification on Risk and Return: Unsystematic Risk
In general, diversification can reduce risk without negatively impacting expected return.
![Thumbnail](../../../../../../figures.boundless-cdn.com/15662/square/secmktline.jpg)
Impact of Diversification on Risk and Return: Systematic Risk
Systematic risk is intrinsic to the market, and thusly diversification has no effect on its presence in investments.