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Excluding certain securities doesn’t lower your expected return, it just raises the volatility very slightly because you are less diversified.
by esoterica 7y ago
Excluding certain securities doesn’t lower your expected return, it just raises the volatility very slightly because you are less diversified.
- beerandt 7y agoThis presumes a difference of opinion in what blackrock thinks the security is going to do vs the investor. If blackrock thought it could get a better rate of return without a particular security, then there's no moral justification needed for dumping it.