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Pick 4 stocks and create a portfolio. Discuss how and why the combination will reduce portfolio risk compared to holding these stocks individually and separately.
Pick 4 stocks and create a portfolio. Discuss how and why the combination will reduce portfolio risk compared to holding these stocks individually and separately. What would be the portfolios beta? You can find stocks beta on each stocks at finance yahoo. Is your portfolio still subject to market risk? And why? then, discuss and comment on CAPM.
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