Wednesday, 10 July 2013

ACC501 GDB Solution & Discussion



----------  ----------
From: YASIR AWAN <yasirawan1992@gmail.com>
Date: Tue, Jul 9, 2013 at 11:38 AM
Subject: { } ACC501 GDB Solution & Discussion
To: blue_heaven@googlegroups.com, coool_vu_students@googlegroups.com, new-virtual-university-pakistan@googlegroups.com, virtaul-pakistan@googlegroups.com, virtualstars@googlegroups.com, vuhelp_pk@googlegroups.com, VU-ROCKS@googlegroups.com, vu-rose@googlegroups.com, vu-star-angels@googlegroups.com, cybarien-network@googlegroups.com


Learning Objective:

· This discussion will enable the students to understand the concepts of "Risk and its Diversification".
· They will also be able to understand the different types of risks and how the risk can be minimized.



"Diversification and Portfolio Risk "

Ali wants to invest in the stock market while making its total risk zero by creating a unique portfolio. In this mode, he starts from choosing a single stock and adding multiple stocks to this one in order to develop a series of portfolios of his choice. Number of securities range from 1 to 1,000 in the different designed portfolios but he remains unable to get his desired risk level. Despite of rigorous computations, the risk level is still away from zero.

Required:
Can the total risk of portfolio be reduced exactly to zero? Why or why not? Discuss with conceptual rationale.

--
You received this message because you are subscribed to the Google
Groups "-VU-ROCKS-" group.
To post to this group, send email to VU-ROCKS@googlegroups.com
http://groups.google.com/group/VU-ROCKS?hl=en
http://www.facebook.com/groups/vurocks/
---
You received this message because you are subscribed to the Google Groups "-VU-ROCKS-" group.
To unsubscribe from this group and stop receiving emails from it, send an email to VU-ROCKS+unsubscribe@googlegroups.com.
For more options, visit https://groups.google.com/groups/opt_out.
 
 



--
Need Your Comments.....!

-- 

For University of Pakistan Study Material Sharing, Discussion, etc, Come and join us at http://4e542a34.linkbucks.com
You received this message because you are subscribed to the Google
Groups "Study" group.
To post to this group, send email to http://ca13054d.tinylinks.co
For more options, visit this group at
http://004bbb67.any.gs

No comments:

Post a Comment