Why Diversification is Important in Investing: Benefits, Strategies, and Asset Allocation Insights
Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how to reduce risk and create better returns by diversifying across regions and assets. Risk is measured in volatility, i.e. how your assets fluctuate in price. Such a theory was new when it was first released in the 1950s, and Markowitz…