DanteFlare3989 DanteFlare3989
  • 02-07-2021
  • Business
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A strategy that attempts to reduce the overall risk of an entire investment portfolio by investing in a variety of assets is called

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ewomazinoade ewomazinoade
  • 07-07-2021

Answer:

Portfolio diversification

Explanation:

Portfolio diversification is the process of holding different asset and security classes in order to minimise the non systemic risk of the portfolio

Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.

to diversify assets in the portfolio should have zero correlation

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