The Effects of Diversification on Banks? Expected Returns

Borradores de Economia
Número: 
524
Publicado: 
Clasificación JEL: 
G00, G21, G30
Palabras clave: 
Diversification, Risk, Colombian Banking System

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Diana Ricciulli-Marin, Mateo Uribe-Castro
Ana María Iregui-Bohórquez, Ligia Alba Melo-Becerra, María Teresa Ramírez-Giraldo, Jorge Leonardo Rodríguez Arenas
Francisco Javier Lasso-Valderrama, Carmiña Ofelia Vargas-Riaño

In financial theory, the optimal allocation of assets and its relationship with profitability has been one of the main concerns; the question has always been if banks should focus or diversify their assets. In our case, we would like to answer this questi