What is the meaning of Naive diversification?

Naive diversification is a strategy whereby an investor simply invests in a number of different assets in the hope that the variance of the expected return on the portfolio is lowered. In contrast, mathematical programming can be used to select the best possible investment weights. Related: Markowitz diversification.

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APABarry Goldsmith. (2010). Naive diversification. Retrieved September 22, 2026, from http://smartdefine.org/naive_diversification/definitions/1158708
ChicagoBarry Goldsmith. 2010. "Naive diversification" http://smartdefine.org/naive_diversification/definitions/1158708 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, Naive diversification, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/naive_diversification/definitions/1158708>.
MLABarry Goldsmith. "Naive diversification" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/naive_diversification/definitions/1158708>