Talk:Diversification (finance)
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[edit] Standard deviation table
Is there any relation to normality or the central limit theorem? --165.230.129.157 18:52, 20 November 2006 (UTC)
You're probably not checking this page at this point, but the relationship is clearest in the table at the end of the article. As the number of assets in a portfolio increases, the fluctuations of one have less effect on the overall mean. That's pretty much exactly the central limit theorem as I understood it. 218.225.111.205 (talk) 01:17, 18 March 2008 (UTC)
[edit] Merge
I agree the articles should be merged. --SueHay 17:51, 30 March 2007 (UTC)
[edit] Merge completed
I took the liberty of merging the two articles together. Financial diversification now redirects to this article. I'm not an expert in finance, but I think I did a reasonable job on the merging.
Things that still need to be looked at:
1) the intro seems too long. Perhaps the strategies bit needs its own section.
2) in the previous article, there was a segment on super-diversification. This seemed like a personal plug more than an actual contribution to me, so I removed it. As defined previously, super-diversification is not different from horizontal or vertical diversification; it's simply more of the same. Additionally, the definition provided was crap, and not enough to let me understand anything about it except that it takes a lot of money.
3) more explanation on that final table would be nice. I understand what's going on, but don't have access to the textbook to add the explanatory information that table desperately needs.
218.225.111.205 (talk) 01:13, 18 March 2008 (UTC)
