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Diversified Risk Stock Portfolio?? What is the best way to put a portfolio of five to eight stocks together that demonstrate diversified risk? List stocks

Diversified Risk Stock Portfolio??

What is the best way to put a portfolio of five to eight stocks together that demonstrate diversified risk?

List stocks along with their current price and previous 1-year and 5-year rates of return. Below the list of stocks, address the issues described below. Where do you find this information???

  • Explain the difference between portfolio risk and stand-alone risk?
  • Why does anyone select a stock? But... once they do, how this investment portfolio less risky than selecting just one stock?
  • How does risk aversion affect a stock's required rate of return?
  • Explain the distinction between a stock's price and its intrinsic value?

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