tag:blogger.com,1999:blog-14297067.post113034458451565673..comments2023-07-18T03:08:21.050-07:00Comments on PanCrit.Org: Mandelbrot: The (mis)Behavior of MarketsChris Hibberthttp://www.blogger.com/profile/12235621011708498622noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-14297067.post-1130538766551830332005-10-28T15:32:00.000-07:002005-10-28T15:32:00.000-07:00It is hardly news that returns are not lognormal -...It is hardly news that returns are not lognormal - do a search on leptokurtosis and look at how many results refer to markets.<BR/> Anyone who already understood the basics of why diversification is good shouldn't alter their strategy in response to what you've said. The advice to hold 10 to 30 stocks is generally not targetted to a specific estimate of risk. Instead, it reflects the difficulty of finding additional stocks that are uncorrelated to the first 10. Read Swensen's book Unconventional Success if you want to avoid mistakes about diversification.<BR/>- Peter McCluskey (www.bayesianinvestor.com)Anonymousnoreply@blogger.com