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Not really, since "equal" is poorly defined. A blue shirt and red shirt are equally nice, but a closet of assorted shirts is more valuable than a closet of just
by qq66 12y ago
Not really, since "equal" is poorly defined. A blue shirt and red shirt are equally nice, but a closet of assorted shirts is more valuable than a closet of just blue shirts.
A portfolio of diverse stocks, each with an equal risk/reward profile, has equal reward to an individual stock but far lower risk.
- ObviousScience 12y agoThat doesn't mean that I should aim for an even blend of the various things though: in the case of your investment example, it makes sense to preferentially select for certain kinds of financial instruments and only have a minority portion of others, because that's where I get optimum contribution from their respective traits.