Portfolio Diversification Assignment

Portfolio Diversification Assignment - Portfolio...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Portfolio Diversification Assignment Date: January 3, 2011 File: C:\Class Material\BADM 7090\Assignments\Diversification project\Portfolio Diversification Assignment.doc Due Date: 9:00 a.m. on February 9, 2011. You will turn this in by email, which must be time stamped no later than 9:00 a.m. on February 9, 2011. If it is turned in at 9:01 or later, it will not be accepted. Do not wait until the last minute. Technology failures will not be accepted as an excuse. There are no excuses. Get on this short, simple assignment right away and you will have no problems. Send to Sungjae Kim at [email protected] On page 179 of your textbook, Figure 8.9 (roughly equivalent to the image show below) shows the results of an experiment to determine how many stocks are required to achieve full diversification of a portfolio. Notice how the portfolio standard deviation, which represents the risk of the portfolio, declines rapidly as securities are added. These portfolios were constructed randomly, meaning that the standard deviation is calculated
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/28/2012 for the course BADM 7090 taught by Professor Staff during the Fall '08 term at LSU.

Page1 / 2

Portfolio Diversification Assignment - Portfolio...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online