The obvious benefit of holding a diversified portfolio of loans is to reduce the impact of single risk exposures on the bank. Are there any benefits to not being diversified?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
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The obvious benefit of holding a diversified portfolio of loans is to reduce the impact of single risk exposures on the bank. Are there any benefits to not being diversified?

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