Question
With below information justify below statement for a portfolio with two stock A and B: Statement: Portfolio diversification reduce risk even if stocks are positively
With below information justify below statement for a portfolio with two stock A and B:
Statement:
Portfolio diversification reduce risk even if stocks are positively correlated in portfolio and return cannot be more than the return of the maximum return of individual stock
StockMeanSTDWeight
A12%24%0.6
B15%30%0.4
Correlation coefficient=0.33
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Abstract Analytic Number Theory
Authors: John Knopfmacher
1st Edition
0486169340, 9780486169347
