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Paste A BIU-abxX A A 2-A - A - A A 2-2 215 Font Paragraph Styles Editing Dictate Clipboard 5 Styles 5 Voite Question 2

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Paste A BIU-abxX A A 2-A - A - A A 2-2 215 Font Paragraph Styles Editing Dictate Clipboard 5 Styles 5 Voite Question 2 (10 marks) (a) It is commonly accepted that there are gains from adding securities to an investment portfolio. Explain what is meant by this statement. (Your answer should include a discussion and example regarding systematic and non-systematic risk as well as an indication of the optimal number of assets to be included within a portfolio in theory and in practice.) (4 marks)

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