Data/hora: 11/06/2024 11:56:16

Provedor de dados: | 31
País: | United States
Título: | Portfolios of Agricultural Market Advisory Services: How Much Diversification is Enough?
Autores: | Cabrini,   Silvina M.; Stark,   Brian G.; Irwin,   Scott H.; Good,   Darrel L.; Martines-Filho,   Joao Gomes.
Data: | 2008-09-30
Ano: | 2005
Palavras-chave: | Corn; Diversification; Market advisory service; Portfolio; Soybeans; Agricultural Finance; Crop Production/Industries; Marketing; G11; Q10; Q12; Q14.
Resumo: | This study analyzes the potential risk-reduction gains from naïve diversification among market advisory services for corn and soybeans.  The total possible decrease in risk through naïve diversification is small, mainly because advisory prices are highly correlated on average.  Moreover, because marginal risk-reduction benefits decrease rapidly with size and the cost of holding the portfolios increases linearly due to services’ subscription fees, it is optimal to limit portfolio size to a few advisory programs.  Based on certainty equivalent measures and two representative risk-aversion levels, preferred portfolio sizes are between one and three programs.
Tipo: | Journal Article
Idioma: | Inglês
Identificador: | http://purl.umn.edu/43717
Relação: | Journal of Agricultural and Applied Economics&gt;Volume 37, Number 01, April 2005
Formato: | 14