【中山大学431金融 罗斯 公司理财】Topic_05_E2.pdfVIP

Topic 5 Exercise 2 Diversification, Risk and Return The Security Market Line ties the expected return on stocks to the systematic nondiversifiable risks. The development of the model usually references studies indicating that investors holding as few as 15 stocks effectively reduce the risk of the portfolio down to the systematic level. The compensation for the risk in investment is related to the risk associated with only the element of risk that cannot be diversified away. The Efficient Frontier article, “The 15-Stock Dive