---
title: Diversification Paradox and Uncertainty Allocation
url: https://www.ml-quant.com/papers/ssrn/4584025/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4584025
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4584025
featured: 2023-09-28
citations: unknown
topic: Portfolio & Allocation
---


# Diversification Paradox and Uncertainty Allocation

Firms diversify investments into various industries to mitigate risks, but this can result in decreased growth, equity value, and financial constraint, leading to inefficient resource allocation and a drop in overall productivity.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4584025
- Identifier: SSRN 4584025
- Released: 2023-09-20
- First featured: Quant Letter No. 17 (2023-09-28): https://www.ml-quant.com/issues/2023-09-28/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Portfolio & Allocation

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