Diversification, Gambling and Market Forces (Digest Summary): M-H. Broihanne, M. Merli & P. Roger, Review of Quantitative Finance and Accounting, Vol. 47, No. 1 (July 2016), 129-157

Research output: Contribution to specialist publicationBook/Film/Article review


Investors underdiversify because of solvency constraints and preferences for lottery-type outcomes. The relationship between underdiversification and positive skewness of portfolio returns breaks down somewhat in bear markets as co-movement between stocks increases.
Original languageEnglish
Specialist publicationCFA Digest
PublisherCFA Institute
Publication statusPublished - Dec 2016

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