TITLE

The Myth of Portfolio Diversification

AUTHOR(S)
Cashman, Dan
PUB. DATE
January 1998
SOURCE
Financial Executive;Jan/Feb1998, Vol. 14 Issue 1, p14
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article discusses some myths associated with diversified portfolios facing many industries and corporate investors. The author states that while most market analysts believe diversifying a portfolio is less risky, they are often forced to come up with new ideas to achieve that end in order to meet productivity demands. Some of these ideas, especially the ones they are passionate about, lead to good returns, but those that are inferior should not be embraced just to achieve diversification. The author says that while a concentrated portfolio is more volatile, it can yield higher gains.
ACCESSION #
211528

 

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