The other model to add to the discussion is the Barbell Strategy created by Nassim Taleeb. Put 80% into something totally safe and put 20% into something extremely risky. That can have the same risk profile as the single investment you describe but offer the chance of disproportionate returns when (if) the risky investments performs
RE: Levels of Diversification
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Levels of Diversification
I think this is noteworthy of only this case or ones within the vicinity. Regardless of what percentage of risk there is, it is still a risk, and the degree of this may or may not be compatible with every investor's profile.
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