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Portfolio theory

Forums › ACCA Forums › ACCA FM Financial Management Forums › Portfolio theory

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by mrjonbain.
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  • March 2, 2022 at 11:46 am #649639
    Ashad2000
    Participant
    • Topics: 3
    • Replies: 1
    • ☆

    Portfolio theory means what

    March 2, 2022 at 4:35 pm #649660
    mrjonbain
    Moderator
    • Topics: 6
    • Replies: 2576
    • ☆☆☆☆☆

    This seems a fairly open question. It is basically a technique of reducing risk by investing carefully in a number of different companies and sectors. In this way unsystemic risk can be reduced or even effectively eliminated but systemic (also caused market risk) can never be eliminated. See following for more details-

    https://www.accaglobal.com/pk/en/student/exam-support-resources/fundamentals-exams-study-resources/f9/technical-articles/capm-part1.html

    Hope this helps. Please ask if you want more information.

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