Abstract
There is a widely accepted rule that diversification is an efficient way for reducing likely loss of an investment. The idea is reflected in a famous saying that “one should not put all the eggs into one basket”. In portfolio selection, this means the investors should not allocate all their money to just a few securities. Placing all the money in only a few companies could lead to financial disaster. One example of this is the nearly 80 percent decline in the Nasdaq market index with many high-tech companies from March 2000 to October 2002.
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© 2010 Springer-Verlag Berlin Heidelberg
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Huang, X. (2010). Model Varieties. In: Portfolio Analysis. Studies in Fuzziness and Soft Computing, vol 250. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-11214-0_5
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DOI: https://doi.org/10.1007/978-3-642-11214-0_5
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-11213-3
Online ISBN: 978-3-642-11214-0
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