The Risk Averse or Risk Seeking Investor

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Presentation transcript:

The Risk Averse or Risk Seeking Investor Alex Tongchinsub Jasmine Williams Diana Yen

Introduction What is an investment portfolio? combined holding of more than one stock, bond, commodity, real estate investment, cash equivalent, or other asset by an individual or institutional investor. The purpose of a portfolio is to reduce the risk by diversification. A diversified portfolio contains a variety of investments. Two key theorems by which this concept can be quantified are the Markowitz two-asset portfolio model and its extension, the capital asset pricing model (CAPM).