John E. Rice, CFA, CFP, notes that MPT originally started with a paper by Harry Markowitz in 1952 that basically quantified mathematically the idea that
diversification across different asset classes that are not well correlated reduces risk.
Ferri is a fan of ETF investments that, very efficiently and at low cost, give advisors the means to create portfolio
diversification across different asset classes.
Not exact matches
In doing so, they should also provide adequate
diversification because they not only invest
across a range of
different stocks, but they also invest in
different asset classes.
Diversification helps you ride out the ups and downs of financial markets by spreading your money
across different asset classes.
This novel approach affords investors instant
diversification, low fees, and exposure to broad based strategies
across different asset classes.