Question
(1) Should portfolio effects influence how investors think about the risk of individual stocks? (2) If you decided to hold a one-stock portfolio and consequently
(1) Should portfolio effects influence how investors think about the risk of individual stocks? (2) If you decided 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 earn a risk premium on that part of your risk that you could have eliminated by diversifying?
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
