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Such a specialized anatomical feature also shows that, even at the earliest stages of tetrapod development, there was much diversification, both in form and function.
"As you move up, and if you go over 30percentt, you're taking on additional risk and expense, so you're not getting as much diversification benefit," she says.
As the performance of foreign stocks becomes more highly correlated to that of Wall Street, so the argument goes, overseas investments do not offer much diversification.
Too much diversification means that no one or two successful bets can have much overall impact on your portfolio.
While diversification is good in theory, too much diversification means that if one stock does well, it has little effect on the portfolio.
Corporate bonds, for example, have much lower volatility than stocks but tend to swoon when stocks fall, so they dont provide as much diversification as might first appear.
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So much for diversification.
"I doubt you'd get much greater diversification," Professor Evans said.
"At the end of the day," Ms. Jones said, "these funds may own a lot of different bonds, but you don't get much issuer diversification, and you're getting that at very low yields".
Canadian banks have had mixed success building U.S. consumer banks that can bring them some much needed diversification.
The problem is that historical data dont tell us very much about diversification, particularly not in the lowest credit grades.
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