Question

III. Describe investment diversity.

What is meant by diversity? How is diversity considered across companies and how is this considered in terms of sectors of our economy

Answer 1

Investment diversity

A diversified investment is a portfolio of various assets that earns the highest return for the least risk. A typical diversified portfolio has a mixture of stocks, fixed income, and commodities. Diversification works because these assets react differently to the same economic event.

Diversity means having distinct or unlike elements. In a workplace, diversity means employing people who may be different from each other and who do not all come from the same background. The differences may be those of national origin, physical appearance, religion, education, age, gender. diversity brings many advantages to an organization: increased profitability and creativity, stronger governance and better problem-solving abilities. Employees with diverse backgrounds bring to bear their own perspectives, ideas and experiences, helping to create organizations that are resilient and effective, and which outperform organisations that do not invest in diversity.