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Some investors believe that diversification does not work if you only have two securities in your portfolio. Do you agree with this statement? Please use
Some investors believe that diversification does not work if you only have two securities in your portfolio. Do you agree with this statement? Please use the below two stocks as an example to explain.
| Costco | |
| Expected Return | 0.018099184 |
| Variance | 0.002205806 |
| Standard Deviation (Volatility) | 0.046966007 |
| Tesla | |
| Expected Return | 0.036531868 |
| Variance | 0.001324838 |
| Standard Deviation (Volatility) | 0.036398322 |
| Covariance | 3.90122E-06 |
| Correlation | 0.002282106 |
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Sound Investing, Chapter 19 - Related-Party Transaction Ruse
Authors: Kate Mooney
1st Edition
0071719415, 9780071719414
