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Instead of diversifying risk, the investor has concentrated it.
"Financial markets are supposed to be very helpful in diversifying risk, but the whole point is you want uncorrelated returns across markets," he said.
She looked at several factors that might affect the cost and benefits of buying American assets, including each country's capital controls, its financial development, its investment returns at home, and how useful dollar assets were in diversifying risk.
Yet such funds have become popular, especially with investment consultants, because they are seen as diversifying risk.And even this somewhat patchy record may overstate the potential for hedge-fund success.
Lipper: Diversifying risk, and you diversify that by diversifying managers, diversifying time horizons, diversifying purpose.
Forbes: So again, going back to the old thing of diversifying risk?
Similar(53)
And all, with the possible exception of Georgia, see closer ties with the EU as a way of diversifying risks rather than antagonising Russia.This is one of those occasions when the EU can be more influential than its constituent parts.
The activities of insurers and insurance intermediaries involve pooling and diversifying risks (Harrington and Niehaus, 1999).
Most of the time, the complex new instruments diversify risk and serve the public good.
Seven are in single-car garages in a condominium complex "to diversify risk," he said.
Economies of scale apply to insurance, which benefits from large and well diversified risk pools.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com