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Article
Time Diversification: Tool, Fallacy or Both?
Faculty and Research Publications
  • Ladd Kochman, Kennesaw State University
  • Randy Goodwin, Kennesaw State University
Document Type
Article
Publication Date
6-1-2002
Abstract

It seems fair to conclude that time diversification is more nearly a fallacy than a tool. Total periodic returns based on random annual outcomes expose the practice of diversifying with time not only as unproductive but as extremely risky as well. Yet, as the contrived distribution of alternating returns of 30% and -10% demonstrated, it is impossible to completely reject the idea that risk can actually decrease over time.

Citation Information
Kochman, Ladd, and Randy Goodwin. "Time Diversification: Tool, Fallacy or Both?" American Business Review 20.2 (2002): 55-6. Print.