Building a Diversified Portfolio

True diversification isn't just owning many stocks — it's owning assets that behave differently under various market conditions. Learn correlation, allocation frameworks, and rebalancing.

Key Takeaways

• 1.Diversification reduces unsystematic (company-specific) risk
• 2.Correlation measures how assets move relative to each other
• 3.Modern Portfolio Theory aims to maximize return per unit of risk
• 4.Regular rebalancing maintains your target allocation