A well-diversified portfolio of randomly chosen stocks must include at least 30 stocks. This contradicts the widely accepted notion that the benefits of diversification are virtually exhausted when a portfolio contains approximately 10 stocks.
Original Description:
Original Title
20080506 Number of Stocks in a Diversified Portfolio
A well-diversified portfolio of randomly chosen stocks must include at least 30 stocks. This contradicts the widely accepted notion that the benefits of diversification are virtually exhausted when a portfolio contains approximately 10 stocks.
A well-diversified portfolio of randomly chosen stocks must include at least 30 stocks. This contradicts the widely accepted notion that the benefits of diversification are virtually exhausted when a portfolio contains approximately 10 stocks.