Mechanics of Diversification
![Mechanics of Diversification Large](/media/images/investments-mechanics-of-diversification_lg.original.jpg)
How does diversification work? Developed in conjunction with Wharton Professor, Donald Keim, this application introduces students to the mechanics of diversification in an engaging format using three interactive tools:
- Variance-covariance matrix
- Two-asset opportunity set
- Limits of diversification graph
Select the Slide Deck for a guided assignment on this topic. Then use the Activity buttons to try the exercises yourself. Your instructor may have additional guidance regarding the use of this Teaching Tool.