Abstract

THIS PAPER iS one effort to test the maximization of yield concept of investment portfolio management. It is concerned with the impact of available industrial common stock yields on portfolio diversification policy. More specifically, the author's aim is to explore the concept that from a universe of common stocks of large-sized, broadly-diversified, high-grade corporations, a group purchase of equal dollar amounts on a yield maximization basis may be justified. Yield would be given preference over maximum diversification and minimum risk.'

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