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- Title
ASPECTS OF CORPORATE BOND PORTFOLIO DIVERSIFICATION.
- Authors
McEnally, Richard W.; Boardman, Calvin M.
- Abstract
This article investigates various aspects of corporate bond portfolio diversification. The investigations in the equity area have confined the attention to naive diversification, which is equal investment in randomly selected securities. The level of risk reduction which is attainable through naive diversification is comparatively limited for high grade bonds but approaches the figure for common stocks in the case of bonds at the low end of the quality spectrum. The analysis considers only monthly return dispersion, and does not address the question of diversification against default risk directly.
- Publication
Journal of Financial Research, 1979, Vol 2, Issue 1, p27
- ISSN
0270-2592
- Publication type
Academic Journal
- DOI
10.1111/j.1475-6803.1979.tb00014.x