Several contributions in the literature argue that a significant in-sample risk reduction can be obtained by investing in a relatively small number of assets in an investment universe. Furthermore, selecting small portfolios seems to yield good out-of-sample performances in practice. This analysis provides further evidence that an appropriate preselection of the assets in a market can lead to an improvement in portfolio performance.
SIMILAR POSTS
Revolutionising SME credit risk assessment with Wiserfunding and KUKE partnership
In a groundbreaking move that promises to redefine the landscape of SME credit risk assessment, the partnership between KUKE and [...]
The future of export credit: Leveraging tech & intelligence for better risk assessment
The landscape of export credit, a critical component of global trade, is undergoing a transformative shift. This change is driven [...]
Balancing risk and opportunity in a globalised world
At the heart of international trade and economic growth, Export Credit Agencies (ECAs) are more than just institutions; they're the [...]
