dc.contributor.author | Friberg, Richard | |
dc.date.accessioned | 2020-12-22T09:29:16Z | |
dc.date.available | 2020-12-22T09:29:16Z | |
dc.date.created | 2020-12-11T13:14:41Z | |
dc.date.issued | 2020 | |
dc.identifier.issn | 0024-6301 | |
dc.identifier.uri | https://hdl.handle.net/11250/2720713 | |
dc.description.abstract | This paper develops a framework using Monte Carlo simulation to examine risk/return properties
of intra-industry product portfolio composition and diversification. We use product-level data
covering all Swedish sales of alcoholic beverages to describe the risk profiles of wholesalers and
how they are affected by actual and hypothetical changes to product portfolios. Using a large
number of counterfactual portfolios we quantify the diversification benefits of different product
portfolio compositions. In this market the most important reductions in variability come from
focusing on domestic products and from focusing on product categories that have low variability.
The number of products also has a large effect in the simulations, moving from a portfolio of 10
products to one of 20 products cuts standard deviation of cash flows in relation to mean cash
flows by more than half. The concentration of import origins plays a minor quantitative role on
risk/return profiles in this market. | en_US |
dc.language.iso | eng | en_US |
dc.rights | Navngivelse 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by/4.0/deed.no | * |
dc.subject | diversification | en_US |
dc.subject | enterprise risk management | en_US |
dc.subject | monte carlo | en_US |
dc.subject | product portfolios | en_US |
dc.subject | risk-return relation | en_US |
dc.title | All the bottles in one basket? Evaluating the effect of intra-industry diversification on risk | en_US |
dc.type | Peer reviewed | en_US |
dc.type | Journal article | en_US |
dc.description.version | publishedVersion | en_US |
dc.source.journal | Long range planning | en_US |
dc.identifier.doi | 10.1016/J.LRP.2020.101973 | |
dc.identifier.cristin | 1858768 | |
cristin.ispublished | true | |
cristin.fulltext | original | |
cristin.qualitycode | 1 | |