Comment by deadmutex
3 days ago
This is extremely simplified, and not realistic. One counter to this is markowitz portfolio theory, or "diversification effect".
3 days ago
This is extremely simplified, and not realistic. One counter to this is markowitz portfolio theory, or "diversification effect".
Of course the three short paragraph description of a general principle posted to Hacker News to give a partial answer to someone's 8-word question is simplified. What's the alternative? HN's text box is too short to contain a 4-year business course.