Portfolios are called well diversified if they include a large number of securities and the investment proportion

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Portfolios are called “well diversified” if they include a large number of securities and the investment proportion in each is sufficiently small. The proportion of any particular security in a well-diversified portfolio is small enough so that, for all practical purposes, a reasonable change in that security’s rate of return will have a negligible effect on the portfolio’s rate of return.

 P-69

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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