## What is Diversification?

What is Diversification? The goal of diversification - the ultimate goal of diversification is to maximize, to get the highest possible risk-adjusted returns. Point number two Point number two sort of follows…

## Correlation Matrix

Correlation Matrix Now let's take a look at this correlation matrix. A correlation matrix is simply a collection of, of correlations. And some of those numbers may not be large enough for…

## Portfolio Risk

Portfolio Risk What is Portfolio Risk? There you have ten years, three assets and let's think of those as annual returns. It does not matter whether these are Dollar returns or Euro returns,…

## How do we calculate beta?

What is beta? How do we calculate beta? Beta is not only a very widely used measure of risk but also, it's the central magnitude in what we call the capital…

## What is Risk or Volatility?

What is Risk or Volatility? So, in order to now move on a little bit, we're going to think in terms of return. We're going to focus for the next few…

## Types of Risk

Types of Risk In business, lots of risks are noticed. It can be aroused from the geography or the industry. Due to this reason, risk managers are now hired to…

## Systematic Risk vs Unsystematic Risk

Systematic Risk vs Unsystematic Risk Risk Analysis in Capital Budgeting Diverse ranges of risks are present in the process of investment. In case the capital is lost completely then you…