Markowitz diversification

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

Financial and business terms. 2012.

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  • MARKOWITZ, HARRY M. — MARKOWITZ, HARRY M. (1927– ), economist and Nobel Prize winner. Born in Chicago, Markowitz received his higher education, B.A. through Ph.D. (1954), at the University of Chicago. He was on the research staff of the Rand Corporation and technical… …   Encyclopedia of Judaism

  • Diversification (finance) — Finance Financial markets Bond market …   Wikipedia

  • Magic of diversification — The effective reduction of risk ( variance) of a portfolio, achieved without reduction to expected returns through the combination of assets with low or negative correlations (covariances). Related: Markowitz diversification Mail float Refers to… …   Financial and business terms

  • Naive diversification — A strategy whereby an investor simply invests in a number of different assets and hopes that the variance of the expected return on the portfolio is lowered. Related: Markowitz diversification. The New York Times Financial Glossary …   Financial and business terms

  • magic of diversification — The effective reduction of risk ( variance) of a portfolio, achieved without reduction to expected returns through the combination of assets with low or negative correlations (covariances). Bloomberg Financial Dictionary Related: Markowitz… …   Financial and business terms

  • 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. In contrast, mathematical programming can be used to select the best possible… …   Financial and business terms

  • Harry Markowitz — Infobox Scientist name = Harry Markowitz image size = 180px birth date = Birth date and age|1927|8|24|mf=y birth place = Chicago, Illinois, U.S. nationality = United States field = Finance work institution = Rady School of Management alma mater …   Wikipedia

  • Harry M. Markowitz — Harry Markowitz Harry Max Markowitz (né le 24 août 1927 à Chicago) est un économiste américain. Il a été lauréat du Prix de la Banque de Suède en sciences économiques en mémoire d Alfred Nobel en 1990. C est l auteur du modèle de… …   Wikipédia en Français

  • Harry Markowitz — Pour les articles homonymes, voir Markowitz (homonymie). Harry Max Markowitz (né le 24 août 1927 à Chicago) est un économiste américain. Il a été lauréat du Prix de la Banque de Suède en sciences économiques en mémoire d Alfred Nobel en …   Wikipédia en Français

  • Harry Markowitz — A Nobel Memorial Prize winning economist who devised the modern portfolio theory in 1952. Markowitz s theories emphasized the importance of portfolios, risk, the correlations between securities and diversification. His work changed the way that… …   Investment dictionary

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