How Many Stocks Make a Diversified Portfolio?

Meir Statman

609 citations0/0 files storedJournal of Financial and Quantitative Analysis

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Markets and Investment Strategies Financial Risk and Volatility Modeling Risk and Portfolio Optimization

Abstract

We show that a well-diversified portfolio of randomly chosen stocks must include at least 30 stocks for a borrowing investor and 40 stocks for a lending investor. This contradicts the widely accepted notion that the benefits of diversification are virtually exhausted when a portfolio contains approximately 10 stocks. We also contrast our result with the levels of diversification found in studies of individuals' portfolios.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 609 citations exist upstream.

References

1959Portfolio Selection: Efficient Diversification of Investments 1982Modern Portfolio Theory and Investment Analysis.1952Safety First and the Holding of Assets 1979Investment Analysis and Portfolio Management.1975THE ASSET STRUCTURE OF INDIVIDUAL PORTFOLIOS AND SOME IMPLICATIONS FOR UTILITY FUNCTIONS

Cited by

2002Beyond Greed and Fear 2012Information demand and stock market volatility 2006Socially Responsible Indexes 2004Equilibrium Underdiversification and the Preference for Skewness 2015Socially Responsible Mutual Funds 2018Fossil Fuel Divestment and Portfolio Performance 2004The Diversification Puzzle 2009Prediction-based portfolio optimization model using neural networks

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.