Decisions, Stocks, and Time Diversification

In this article, the author reminds us again that return mean and variance are not enough. Appropriate investment risk-bearing scales with surplus over future withdrawal commitments, as well as with investment return characteristics. This framework provides for the integration of financial planning and investment decision-making. Its time-varying risk aversion with the ratio of investments to surplus also provides an opportunity for use of dynamic strategies, though speculative bubbles require compensating inputs to avoid excessive allocation extremes. Appropriate risk-bearing can also scale with functions of shortfall probability to deal with time-specific funding requirements. The probability of avoiding shortfall from an initial surplus over longer time horizons may scale close to the square root of time, creating an illusion of time diversification. In contrast, from an initial surplus deficit, minimizing shortfall probability is akin to playing Russian roulette. Allocations based on minimized shortfall probability can be usefully blended with mean–variance allocations, especially for 5- to 15-year time horizons.

Time diversification and common stocks

Atlantic Economic Journal ◽

10.1007/bf02302254 ◽

1993 ◽

Vol 21 (3) ◽

pp. 94-94

Author(s):

Ravija Badarinathi ◽

Ladd M. Kochman

Keyword(s):

Common Stocks ◽

Time Diversification

Option Theory, Time Diversification, and Index Funds

The Journal of Index Investing ◽

10.3905/jii.2011.2011.1.005 ◽

2011 ◽

pp. 110730015725008

Author(s):

Keith Redhead ◽

Jacek Niklewski

Keyword(s):

Index Funds ◽

Time Diversification ◽

Option Theory

Time, diversification, and dispersal on the Australian continent

Language Dispersal, Diversification, and Contact ◽

10.1093/oso/9780198723813.003.0007 ◽

2020 ◽

pp. 116-141

Author(s):

Nicholas Evans

Keyword(s):

Linguistic Diversity ◽

New Guinea ◽

Indigenous Languages ◽

Small Scale ◽

Human Occupation ◽

Hunter Gatherers ◽

Australian Family ◽

Australian Continent ◽

Time Diversification ◽

Colonial Contact

Sahul, the ancient continent uniting Australia and New Guinea, is the only inhabited continent uniquely occupied by small-scale societies until colonial contact. And Australia (only separated from New Guinea for 10,000 years) is the only continent exclusively occupied by hunter-gatherers. This makes Sahul, and Australia, crucial for understanding how language has evolved through our deep human past. This chapter addresses three enigmas: first the discrepancy in deep linguistic diversity and typological disparity between the Australian and New Guinea hemi-continents (1 maximal clade in Australia, over 50 in New Guinea), second the apparent relatedness of all Australian indigenous languages despite continuous human occupation for 60,000 years with no external intrusions, and third the recent spread of the Pama-Nyungan branch of the Australian family over seven-eighths of the continent, most likely in the mid-Holocene?

The Time-Diversification Controversy

Financial Analysts Journal ◽

10.2469/faj.v51.n3.1907 ◽

1995 ◽

Vol 51 (3) ◽

pp. 68-76 ◽

Cited By ~ 65

Author(s):

Steven R. Thorley

Keyword(s):

Time Diversification

Time Diversification and Estimation Risk

Financial Analysts Journal ◽

10.2469/faj.v56.n5.2390 ◽

2000 ◽

Vol 56 (5) ◽

pp. 55-62 ◽

Cited By ~ 34

Author(s):

Björn Hansson ◽

Mattias Persson

Keyword(s):

Estimation Risk ◽

Time Diversification