In finance, diversification means reducing risk by investing in a variety of assets. If the asset values do not move up and down in perfect synchrony, a diversified portfolio will have less risk than the weighted average risk of its constituent assets, and often less risk than the least risky of its constituent. Therefore, any risk-averse investor will diversify to at least some extent, with more risk-averse investors diversifying more completely than less risk-averse investors.
Open a free trading account today
Open a Live Trading Account Today, Get Free Daily Trading Signals. Open your trading account right now and get your financial trading journey started with this great broker. No commissions, get 24 hour withdrawals with this award winning platform.