Unique Diversification Benefit

Unique Diversification Benefit

Reduction in the likelihood of financial distress for a conglomerate firm that comes with its diversified investments.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Unique Diversification Benefit

The reduction in the likelihood of financial difficulties that occurs when a person or company diversifies his/her/its investments. The downside to the unique diversification benefit, however, is the fact that it generally reduces the expected return.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Among those that may offer attractive risk and return profiles - as well as unique diversification benefits - are mortgage servicing rights (MSRs), non-performing loans (NPLs) in the residential mortgage market and synthetic residential mortgage-backed securities (RMBSs).
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