Diversifying sufficiently among uncorrelated risks can reduce portfolio risk toward zero. But financial engineers should know that's not true of a portfolio of correlated risks. (Harry Markowitz)

Diversifying sufficiently among uncorrelated risks can reduce portfolio risk toward zero. But financial engineers should know that's not true of a portfolio of correlated risks.

Harry Markowitz

Related topics

portfolio reduce risk should zero

Related quotes

It is very clear that voice communications is moving on to the Internet. In the end, the price that anyone can provide for voice transmission on the Net will trend toward zero. View quote
Meg Whitman
Being rich is a good thing. Not just in the obvious sense of benefitting you and your family, but in the broader sense. Profits are not a zero sum game. The more you make, the more of a financial impact you can have. View quote
Mark Cuban
I would argue that the next President, either Bush or Gore, should strike a 'national' posture, exhibiting generosity toward the defeated opponent, but proceeding with determination to implement an agenda. View quote
Richard V. Allen
In the financial system we have today, with less risk concentrated in banks, the probability of systemic financial crises may be lower than in traditional bank-centered financial systems. View quote
Timothy Geithner
The survival of the United States of America as we know it is at risk. And even more - if more should be required - the future of human civilization is at stake. View quote
Al Gore