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RE: Get Inspired by a Few Quotes about Diversification of Your Investments (Putting Your Eggs in Multiple Baskets Instead of Just One)
Well, technically diversification limits losses and gains but it limits losses more than gains if that makes sense. 3 assets that have a maximum rate of return of 30%, 20%, and 10%, then an equally proportioned portfolio will yield 20% at maximum, whereas if you only invested in the 30% asset your maximum is 30%, but you are more vulnerable to the risk specific to that asset.