You have no items in your shopping cart.

Diversification
Spitzer, Jonathan F. Technical Note F-1514 / Published November 16, 2006 Collection: Darden School of Business
Format Price Quantity Select
PDF Download
$6.95
Printed Black & White Copy
$7.25

Product Overview

This note outlines portfolio returns and variance calculations for a portfolio of two risky assets. Particular attention is given to developing understanding of the diversification benefit and emphasizing the often misunderstood point that there are diversification benefits even if the returns to the two stocks are positively correlated. The note is designed to be used as a reading to supplement a class where the students implement the equations with real data.




  • Videos List

  • Overview

    This note outlines portfolio returns and variance calculations for a portfolio of two risky assets. Particular attention is given to developing understanding of the diversification benefit and emphasizing the often misunderstood point that there are diversification benefits even if the returns to the two stocks are positively correlated. The note is designed to be used as a reading to supplement a class where the students implement the equations with real data.

  • Learning Objectives