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Keep in mind the target of diversification isn't really to maximize returns but relatively to Restrict the effects of volatility on the portfolio. To put it differently, diversifying is really a defensive move. Nonetheless it's 1 that every investor should really make, at least to a point.Stocks and bonds represent two from the top asset classes. I
Account icon An icon in The form of someone's head and shoulders. It generally suggests a person profile.Correlation Coefficient A correlation coefficient is usually a statistical measurement that compares the relationship in between two variables.Diversification could also support to scale back volatility – the diploma by which property fluctuat