DOMIAN, DALE L.; LOUTON, DAVID A.; RACINE, MARIE D. - In: Studies in Economics and Finance 21 (2003) 2, pp. 40-64
Finance textbooks typically state that 8 to 20 stocks can provide adequate diversification for a portfolio. However, these recommendations usually assume a short time horizon such as one year. We examine 20‐year cumulative rates of return and ending wealth from an initial $100,000 investment...