Chapter 01 · Section 1.1
Systematic and Specific Risk- 5
If a portfolio is largely diversified (i.e. approximately 20 different stocks) its risk consists almost exclusively in the general market risk which cannot be eliminated by diversification.
Chapter 01 · Section 1.1
If a portfolio is largely diversified (i.e. approximately 20 different stocks) its risk consists almost exclusively in the general market risk which cannot be eliminated by diversification.