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Article. The Investment Matching Principle: How the Risk/ Return Profile Connects to Diversification

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Analyzing Bond Portfolios and Diversification Strategies

This chapter delves into the intricacies of constructing a bond portfolio, emphasizing the necessity of balancing risk and return through diversification. It explores strategies such as demanding appropriate yields, accurate default rate estimations, and the importance of having uncorrelated bonds in a portfolio to manage risks effectively.

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