Portfoliodiversifikation

portfolio diversification

noun port-FOH-lee-oh-dih-fer-zih-fih-kah-TSYOHN Rare

Usage Note

Portfoliodiversifikation is the strategy of spreading investments across different asset classes, sectors, and regions to reduce risk. The principle, formalised by Markowitz, holds that Diversifikation lowers volatility without necessarily reducing expected return.

Examples

"Durch Portfoliodiversifikation lässt sich das unsystematische Risiko weitgehend eliminieren."

Natural Translation

Unsystematic risk can largely be eliminated through portfolio diversification.

Literal Translation

Through portfolio-diversification lets itself the unsystematic risk largely eliminate.

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