Given Markowitz's mean-risk model, maximization of diversification is established as an additional investment target … additional diversification parameters and should therefore lead to an improved mapping of economic reality. The main focus is on … the introduction of diversification functions which make diversification quantifiable and which are used as third …

Diversification is a fundamental topic for all investors but there remains little agreement on how to measure it. Often … it is defined ambiguously through risk-based portfolio construction techniques. Recently it has been suggested to connect … maximising diversification with minimising risk instability, via kurtosis, which presents practical optimisation challenges. In …