RISK AND RETURN OF PORTFOLIO

A portfolio means a combination of two or more securities (assets). A large number of portfolios can be formed from a given set of assets. Each portfolio has risk-return characteristics of its own. Portfolio theory, originally developed by Harry Markowitz, shows that portfolio risk, unlike portfolio return, is more than a simple aggregation of the risks of individual assets. This depends on the interplay between the returns on assets comprising the portfolio. As investors construct a portfolio of investment rather than invest in a single asset, this Section extends the analysis of risk and return associated with portfolio investments

Share This