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Journal of Financial and Quantitative Analysis Vol. 2 No. 1 1967

General Proof that Diversification Pays

Paul A. Samuelson

Abstract

“Don't put all your eggs in one basket, ” is a familiar adage. Economists, such as Marschak, Markowitz, and Tobin, who work only with mean income and its variance, can give specific content to this rule—namely, putting a fixed total of wealth equally into independently, identically distributed investments will leave the mean gain unchanged and will minimize the variance.

DOI
10.2307/2329779
Volume
2
Issue
1
Pages
1
Sources
openalex crossref

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