One of the controversies of diversification is that it may not be beneficial to banks, as it tends to increase systemic … increases with diversification, we extend his analysis to show that if one allows for short positions; then the probability of …

Diversification practices by banks affect their own risk of failing and the risk of the banking system as a whole … (systemic risk). A seminal theoretical work has shown that linear diversification can reduce the risk of a bank failing, but at … for securitization with two tranches, by finding their corresponding optimal diversification solutions, and by discussing …

more diversified strategy. Overall, our study provides novel evidence on the benefit of diversification by demonstrating … the importance of geographic scope and diversification at times of crises. Specifically, we show corporate diversification …, diversification could even become essential for larger firms that are expected by the market to be more diversified. …

diversification is not an easy task as it is impacted by a huge number of different factors: the way systematic risk is measured, the … of the asset features, the model adopted to measure diversification (i.e., equally weighted versus optimal allocation …

This paper studies the relationship between portfolio diversification and fund performance, based on an unexplored … focus. Our results suggest that diversification within, but not across industries, associates with higher buyout fund … performance. We do not find a significant relationship between geographical diversification and performance. These results partly …

framework given by the Solvency II Standard Formula. This gives rise to the definition of diversification functions, which we … define as monotone, subadditive, and homogeneous functions on a convex cone. Diversification functions constitute a class of … models for the study of the aggregation of risk and diversification. The aggregation of risk measures using a diversification …

examine preferences for international diversification versus domestic diversification from American investors’ viewpoints. Our … PO results imply that the domestic diversification strategy dominates the international diversification strategy at a …

crisis by evaluating the potential benefits of international diversification in the search for ‘safe havens’. We use stock …