%0 Journal Article %A Michael Christensen %T A Key Rate of Sector and Country Diversification %D 2018 %R 10.3905/jwm.2018.21.2.021 %J The Journal of Wealth Management %P 21-26 %V 21 %N 2 %X The degree of diversification is the most important issue investors should consider when forming portfolios or choosing portfolio managers. This article argues that high-net-worth (HNW) investors can usually do a lot to increase their degree of portfolio diversification, not only with respect to the market risk but also regarding a whole battery of potential risk factors that impinge on the portfolio. In particular, the article suggests a method to determine the degree of industry diversification and country diversification, which may be useful when HNW investors compare portfolios.TOPICS: Portfolio construction, wealth management, global, risk management %U https://jwm.pm-research.com/content/iijwealthmgmt/21/2/21.full.pdf