Most of us have heard the statement “90% of available diversification is achieved with a 15-stock portfolio.” Very few, if any, of us behave as though we believe this statement, and there9s good reason why—it9s not true. This article lays out the truth about how many times it takes to obtain adequate diversification in a domestic equity portfolio. It9s much more than 15.
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Surz et al. (2000) studied this question.