Why Is Diversification Important In Investing? (Benefits And Advantages)

Harry Markowitz won the Nobel Prize in 1990 for his work in showing mathematically how to reduce risk and create better returns by diversifying across regions and assets. Risk is measured in volatility, i.e. how your assets fluctuate in price. Such a theory was new when it was first released in the 1950s, and Markowitz…

Dividend Investing: The Marginal Rate Of Return/Incremental Return (Incremental Return On Investment)

The marginal rate of return is the most crucial factor to compound efficiently. In the long run, your pension is more dependent on the marginal rate of return than the original investment. If you are into dividend investing, you should study the marginal rate of return on your investments. We argue that dividend investing is…