HomeDefinitionsCompareDebt Unique Diversification BenefitThe financial definition for Unique Diversification Benefit:Reduction in the likelihood of financial distress for a conglomerate firm that comes with its diversified investments. 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 SuggestionsIndirect diversification benefitsInternational diversification Liquidity diversification Markowitz diversification Naive diversification Principle of diversification Sector diversification Click to compare definitions of Unique Diversification Benefit Click to view definitions beginning un |