Decisions, Stocks, and Time Diversification
Dennis W. McLeavey
CFA Institute; University of Rhode Island College of Business Administration
NEOMA Business School
July 22, 2013
This paper presents three definitions of time diversification and analyzes their implications for investment horizons. Using decision quality criteria and methodology, we question standard advice. In analyzing time diversification with a minimum of assumptions, we answer two main questions: how to rigorously define time diversification and what conditions favor it.
Number of Pages in PDF File: 21
Keywords: asset management, time diversification, decision theory, decision quality
JEL Classification: G11, G02working papers series
Date posted: November 9, 2012 ; Last revised: July 22, 2013
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