Tag Archives | global investing

Allocation

Diversification … how many pieces to the pie?

First, what is the difference between diversification and asset allocation? Diversification means the mathematical process to reduce risk through the use of many different types of assets.  Diversification: on Wikipedia. Asset class is the definition of the types of assets that go into diversification formulas. Asset Class discussion on Investopedia. Asset allocation is when risk versus reward are […]

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