Diversification
A risk management technique that mixes a wide variety of investments within a portfolio is called diversification. “Typically, a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio, states Brenda Schmitt, ISU Extension and Outreach Family Finance Field Specialist.
A risk management technique that mixes a wide variety of investments within a portfolio is called diversification. “Typically, a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio, states Brenda Schmitt, ISU Extension and Outreach Family Finance Field Specialist.