Portfolio Theory provides mathematical proof that by leveraging Diversification, you can achieve results not possible without it.
When trying to generate profit ($'s) in investing, the cost you pay is the risk you are willing to take. Generally, if you're looking for a high pay off, you need to be willing to take an appropriate amount of risk (meaning being okay with a significant loss as well). Leading theorists indicate that by holding a collection of investments from all different areas, you will generate a better risk/reward ratio (bang for your buck).
How do I improve my Diversification?
Use the Diversification Score to spread your portfolio across different assets, geographies, and industries. Most importantly, you'll want to invest 90%+ of your entire cash holding.
Find your score under the "Performance Tab":
We require that you showcase an understanding of basic Portfolio Management as a starting point for recruitment opportunities.
To qualify for recruitment opportunities, you must hold at least one portfolio with a Diversification score of 80+.
We challenge you to try building a diversified portfolio!
For additional learnings, check out these articles:
How to build a basic portfolio