Examlex
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Principle of Diversification
A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.
Investment
An investment refers to the allocation of resources, usually money, in expectation of generating an income or profit, involving assets such as stocks, bonds, real estate, or commodities.
Risk
The degree of uncertainty associated with the return on an investment, often linked to the potential for losing some or all of the original investment.
Total Return
Total return is the full return on an investment over a specific time period, including capital gains and dividends, expressed as a percentage of the initial investment cost.
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