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Second, assuming the initial portfolio was perfectly diversified, any trade moves the portfolio away from perfect diversification by increasing unsystematic risk.
Winter says he's been beating almost anyone with a perfectly diversified portfolio.
And insofar as firms (by assumption) are owned by perfectly diversified shareholders, who thus possess equal interests in both sides of all commercial transactions, the program can ignore both distributive and corrective justice.
Whereas contracts, intuitively understood, involve coordination among multiple parties, the transactions addressed by the economic theory ultimately involve only the one perfectly diversified shareholder; and they are, therefore, not in the end agreements at all.
Similar(56)
"Dan is perfectly suited to manage our increasingly diversified business model".
We absolutely must diversify.
He later diversified.
Walsh and Ranogajec diversified.
Many have successfully diversified.
But Daniel has diversified.
We're not diversified.
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