The Time Diversification Puzzle: Why Trustees Should Care

Bianchi, RJ; Drew, ME; Walk, AN

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Author(s)

Bianchi, RJ

Drew, ME

Walk, AN

Griffith University Author(s)

Bianchi, Robert

Drew, Michael E.

Year published

2013

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Abstract

For 50 years, the time diversification debate has sought to understand the essential relationship between risk and investment horizon with little resolution. The answer seems to depend in part on how one views risk. This paper seeks to show that while the time diversification puzzle remains unsolved, the debate itself provides timely food for thought for trustees in setting fund investment policy and for designing defaults, in particular.For 50 years, the time diversification debate has sought to understand the essential relationship between risk and investment horizon with little resolution. The answer seems to depend in part on how one views risk. This paper seeks to show that while the time diversification puzzle remains unsolved, the debate itself provides timely food for thought for trustees in setting fund investment policy and for designing defaults, in particular.
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Journal Title

JASSA

Volume

2013

Issue

Publisher URI

https://www.finsia.com/

Copyright Statement

© 2013 JASSA and the Authors. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.

Subject

Accounting, auditing and accountability

Banking, finance and investment

Finance

Publication URI

http://hdl.handle.net/10072/56365

Collection

Journal articles