The Importance of Diversification in the Economy

Risk is an inherent part of all business decisions and understanding ways this risk can be reduced is essential to succeeding in today’s business environment. In this episode of All Else Equal: Making Better Decisions, hosts and finance professors Jonathan Berk and Jules van Binsbergen explain how to assess risk and discuss smart ways of diversifying it away. But sometimes diversification comes at a cost to productivity and the hosts present this as the fundamental tradeoff of corporate finance.

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All Else Equal: Making Better Decisions Podcast is a production of Stanford Graduate School of Business and is produced by University FM.

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