The Diversified Economy: Possibilities from Modern Portfolio Management

  • Chandra Shekhar BhatnagarEmail author
  • Vaalmikki Arjoon
  • Prakash Ramlakhan


The issue of economic diversification is considered from a portfolio perspective, and the chapter begins by describing a simple mean-variance optimization process for a financial portfolio. Considering an economy to be a portfolio of economic sectors, a brief empirical illustration is provided. This is done to assess the prospect of such an algorithm in providing diversification guidelines for policymakers. For this purpose, quarterly revenue data from June 1991 to June 2016 are used from the energy and non-energy sectors of Trinidad and Tobago. The empirical exercise provides important pointers for the administration, in terms of attention allocation to energy and non-energy sectors in Trinidad and Tobago.


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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Chandra Shekhar Bhatnagar
    • 1
    Email author
  • Vaalmikki Arjoon
    • 1
  • Prakash Ramlakhan
    • 1
  1. 1.Department of Management StudiesThe University of the West IndiesSt. AugustineTrinidad and Tobago

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