A Note on “Risk Reduction in Large Portfolios: Why Imposing the Wrong Constraints Helps’’

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Abstract

This note corrects an error in the proof of Proposition 2 of “Risk Reduction in Large Portfolios: Why Imposing the Wrong Constraint Helps” that appeared in the Journal of Finance, August 2003.

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Jagannathan, R., Ma, T., & Zhang, J. (2019). A Note on “Risk Reduction in Large Portfolios: Why Imposing the Wrong Constraints Helps’’. Journal of Finance, 74(5), 2689–2696. https://doi.org/10.1111/jofi.12824

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