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Economics - Financial Markets
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what is diversification?
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Economic diversification is generally taken as the process in which a growing range of economic outputs is produced.
A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique contends that a portfolio of different kinds of investments will, on average, yield higher returns and pose a lower risk than any individual investment found within the portfolio. Its basically spreading risk by making different kinds of investments
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