Sentences with phrase «away uncompensated risk»

Secondly, portfolios should take compensated risks and diversify away uncompensated risk.

Secondly, portfolios should take compensated risks and diversify away uncompensated risk.

Not exact matches

You shouldn't in individual stocks, sector funds or country funds because they contain idiosyncratic risks that can be easily diversified away and thus are what economists called uncompensated risks.