Do you believe fundamental difference nullifies use of mpt

Reference no: EM13924866

MPT basically studies the correlations between the return of assets of various classes. However, the overriding concern of a credit portfolio manager is to minimize the default correlation because the interest income is relatively fixed in the case of credit assets. Do you believe this fundamental difference nullifies the use of MPT principles in credit portfolio management?

Reference no: EM13924866

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