Diversified portfolio

 

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Diversified portfolio

A portfolio that includes a variety of assets whose prices are not likely all to change together. In international economics, this usually means holding assets denominated in different currencies.



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Well diversified portfolio

Well diversified portfolio

A portfolio that includes a variety of securities so that the weight of any security is small. The risk of a well-diversified portfolio closely approximates the systematic risk of the overall market, and the unsystematic risk of each security has been diversified out of the portfolio.


Diversified investment company

Diversified investment company

An investment vehicle such as a mutual fund that invests in an assortment of securities.




 
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