Diversification Returns and Asset Contributions

@inproceedings{Booth1992DiversificationRA,
  title={Diversification Returns and Asset Contributions},
  author={David G. Booth and Eugene F. Fama},
  year={1992}
}
For a portfolio with a constant percentage invested in each asset, the compound return is the sum of the contributions of the individual assets in the portfolio. The portfolio compound return is greater than the weighted average of the compound returns on the assets in the portfolio. The incremental return is due to diversification. The contribution of each asset exceeds its compound return by the amount it adds to the portfolio diversification return. 

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