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The final frontier : the integration of banking and commerce. Part 2, risk and return using efficient portfolio analysis

Author

Listed:
  • Hsin-Yu Liang
  • Alan K. Reichert
  • Larry D. Wall

Abstract

Using hypothetical portfolios created from historical data on industry profitability, the authors demonstrate that some combinations of banks with other industries could produce higher returns on equity with less risk.

Suggested Citation

  • Hsin-Yu Liang & Alan K. Reichert & Larry D. Wall, 2008. "The final frontier : the integration of banking and commerce. Part 2, risk and return using efficient portfolio analysis," Economic Review, Federal Reserve Bank of Atlanta, vol. 93(2).
    • Handle: RePEc:fip:fedaer:y:2008:n:v.93no.2
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    File URL: https://www.frbatlanta.org/-/media/documents/research/publications/economic-review/2008/vol93no1_wall_reichert_liang.pdf
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    References listed on IDEAS

    as
    1. Sunil Mohanty & Alan K. Reichert & Larry D. Wall, 1993. "Deregulation and the opportunities for commercial bank diversification," Economic Review, Federal Reserve Bank of Atlanta, issue Sep, pages 1-25.
    2. Harry Markowitz, 1952. "Portfolio Selection," Journal of Finance, American Finance Association, vol. 7(1), pages 77-91, March.
    3. Alan K. Reichert & Larry D. Wall, 2000. "The potential for portfolio diversification in financial services," Economic Review, Federal Reserve Bank of Atlanta, vol. 85(Q3), pages 35-52.
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    Cited by:

    1. Hsin-Yu Liang & Alan K. Reichert & Larry D. Wall, 2008. "The final frontier : the integration of banking and commerce. Part 1, the likely outcome of eliminating the barrier," Economic Review, Federal Reserve Bank of Atlanta, vol. 93(1).
    2. Barth, James R. & Sun, Yanfei, 2020. "Industrial banks: Challenging the traditional separation of commerce and banking," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 220-249.

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    Keywords

    Financial services industry; Risk;

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