Question
The historical returns of the stocks of companies A and B during 2015 until 2019 are summarise as follows: Year A% B% 2015 18 22
The historical returns of the stocks of companies A and B during 2015 until 2019 are summarise as follows:
| Year | A% | B% |
| 2015 | 18 | 22 |
| 2016 | 5 | 12 |
| 2017 | -4 | 15 |
| 2018 | 6 | -4 |
| 2019 | 20 | 30 |
(A) In relation to this question explain the concept of efficient frontier and diversification of risk. (5 marks)
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Investing From Scratch A Handbook For The Young Investor
Authors: James Lowell
1st Edition
014303684X, 978-0143036845
