Diversification cone


 

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Diversification cone

For given prices in the Heckscher-Ohlin Model, a set of factor endowment combinations that are consistent with producing the same set of goods and having the same factor prices. Such a set has the form of a cone.



Similar Matches

Diversification

Diversification

Dividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk.


International diversification

International diversification

The attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns.


Currency diversification

Currency diversification

Using more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency.


Indirect diversification benefits

Indirect diversification benefits

Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment.


Unique Diversification Benefit

Unique Diversification Benefit

Reduction in the likelihood of financial distress for a conglomerate firm that comes with its diversified investments.


Further Suggestions

diversification
Cone of diversification
Markowitz diversification
Efficient diversification
Liquidity diversification
Sector diversification
Principle of diversification
Naive diversification


 
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