Naive diversification

Naive diversification
A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered.

Naive diversification
Naked strategies
National Association of Securities Dealers Automatic Quotation (NASDAQ) System
National Futures Association (NFA)
National market
Nearby
Nearby futures contract
Negative carry
Negative convexity ...

' Naive diversification is clearly not optimal in general. For example, when investing in a money market and a stock index, few investors will allocate 50% to the money market.
By Guofu Zhou ...

NYBOT See: New York Board of Trade NYSE See: New York Stock Exchange Naive diversification A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the ...

NYSE See: New York Stock Exchange Naive diversification A strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered.

Related: Naive diversification. Markowitz efficient frontier The graphical depiction of the Markowitz efficient set of portfolios representing the boundary of the set of feasible portfolios that have the maximum return for a given level of risk.

A strategy that seeks to combine assets a portfolio with returns that are less than perfectly positively correlated, in an effort to lower portfolio risk (variance) without sacrificing return. Related: naive diversification ...

See also: Expected return, Markowitz diversification, Systematic risk, Interest rate swap, Capital structure