Naïve diversification indicates only 8 securities are needed for portfolio diversification.

Question

Quizplus · Accepted Answer

Naïve diversification does not specify a particular number of securities needed for portfolio diversification; the concept suggests that diversification can be achieved by investing in a wide range of assets without much regard to the precise nature of those assets, but it does not limit this to just 8 securities.

Naïve Diversification Indicates Only 8 Securities Are Needed for Portfolio