CONCENTRATION RISK Definition

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CONCENTRATION RISK is the risk that an investor will suffer from lack of diversification, investing too heavily in one industry, one geographic area or one type of security.

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LDC is Less-Developed Countries.

VARIANCE, in accounting, is the difference between a projected number and the actual number, e.g. 1. a budget variance is spending either more or less from the amount that was budgeted; and 2. a cost variance is the difference between actual cost and standard cost in the categories of direct material, direct labor, and direct overhead.

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