Diversification (多样化 duōyàng huà) refers to the act of spreading investments among a variety of securities to reduce risk. It works for risk management by constructing different kinds of assets, so it will not be seriously affected when facing a failure in one of the investments.
- 多样化 (duōyàng huà) as in biodiversity (生物多样化 shēngwù duōyàng huà) or diversified diet (饮食多样化 yǐnshí duōyàng huà).
Diversification (多样化 duōyàng huà) word examples:
- Diversified investment (多样化投资 duōyàng huà tóuzī).