Re: CAPM_diversification(positively correlated stock)

Posted by vandita24x7 on Jun 19, 2014; 4:38pm
URL: http://discussion-forum.276.s1.nabble.com/CAPM-diversification-positively-correlated-stock-tp7593095p7593098.html

Two correlated stocks should never be kept in the same portfolio. There is huge theory behind this in quantitative finance.
Btw wht sudden interest in finance??

vandita

On 19 Jun 2014 22:02, "kangkan [via Discussion forum]" <[hidden email]> wrote:

Hi

Is there any condition tat governs weterh diversification will lead to risk reduction in case of two stock iswhich are positively correlated?

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