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Math Definitions - Letter D


Diversification

Definition of Diversification

Definition of Diversification


Diversification refers to the investment practice of splitting your money between a number of different investments.

This reduces the risk of losing all your money if one of the investments fails.

For example, Andrew decides to invest \(\$25,000\) in a diverse portfolio of investments as follows:

  • He invests \(\$5,000\) in a term deposit account at the bank.
  • He buys \(\$10,000\) worh of shares.
  • He invests \(\$5,000\) in a property trust,
  • and \(\$5,000\) in treasury bonds.

Description

The aim of this dictionary is to provide definitions to common mathematical terms. Students learn a new math skill every week at school, sometimes just before they start a new skill, if they want to look at what a specific term means, this is where this dictionary will become handy and a go-to guide for a studen



Audience

Year 1 to Year 12 students

Learning Objectives

Learn common math terms starting with letter D

Author: Subject Coach
Added on: 6th Feb 2018

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