In portfolio management, calculating the expected return and standard deviation of a portfolio comprising two stocks with a positive but low correlation results in a lower overall portfolio risk compared to holding either stock individually.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (6)

• risk concept
• stocks concept
• Portfolio management concept
• expected return concept
• Standard deviation concept
• portfolio concept