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 investment weights. Related: Markowitz diversification.
Nearby TermsNAD Nagoya Stock Exchange Naive diversification Naked option strategies Naked strategies
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University