HomeDefinitionsCompareDebt Indirect diversification benefitsThe financial definition for Indirect diversification benefits:Diversification benefits provided by the multinational corporation that are not available to investors through their portfolio investment. Similar MatchesCurrency diversificationCurrency diversificationUsing more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency. DiversificationDiversificationDividing investment funds among a variety of securities with different risk, reward, and correlation statistics so as to minimize unsystematic risk. Efficient diversificationEfficient diversificationThe organizing principle of modern portfolio theory, which maintains that any risk-averse investor will search for the highest expected return for any particular level of portfolio risk. Further SuggestionsInternational diversificationLiquidity diversification Markowitz diversification Naive diversification Principle of diversification Sector diversification Unique Diversification Benefit Click to compare definitions of Indirect diversification benefits Click to view definitions beginning in |