Can risk be completely eliminated if we add more and more stock-02142
This subjective question is related to the book/course
vu mgt611 Business & Labor Law.
It can also be found in
vu mgt611 Mid Term Solved Past Paper No. 1.
Question 1: Can risk be completely eliminated if we add more and more stock to portfolio?
Justify your answer with reasons.
Justify your answer with reasons.
Answer:
Yes risk can be eliminated if we add more and more stock to portfolio. For example loss from security A can be set off from profit of security B, similarly loss from security A and B can be minimized from profit of security C and D.
