What is portfolio risk?
Definition of Portfolio Risk Portfolio Risk can be defined as the probability of the assets or units of stock that the company holds to sink, thereby causing a significant loss to the company in terms of their investment being lost. A portfolio is defined as the combination or the collection of stocks or investment channels within the company.
What happens to the portfolio's total unsystematic risk as more securities added?
As more securities are added to a portfolio, what will happen to the portfolio's total unsystematic risk? It may eventually be almost totally eliminated. It is likely to increase.
Why can’t an investor attain a portfolio below the feasible set?
Investors cannot attain a portfolio below the feasible set or opportunity set because they cannot • Increase the correlation between two securities • Lower the return on individual securities • Increase the standard deviation of the securities