1 Should portfolio effects influence the way that investors think about the riskiness of individual stocks 2 If you chose to hold a one stock portfolio and consequently were exposed to more risk than diversified investors, could you expect to be compensated for all of your risk That is, could you e...

1 Portfolio diversification does affect investors views of risk A stocks total or standalone risk as ...

1. Should portfolio effects influence the way that investors think about the riskiness of individual stocks? 2....

Question:

1. Should effects influence the way that investors think about the riskiness of individual stocks?
2. If you chose to hold a one-stock and consequently were exposed to more risk than diversified investors, could you expect to be compensated for all of your risk? That is, could you earn a risk premium on the part of your risk that you could have eliminated by diversifying?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...