FIN/571 DQs Week 1 - 18707

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DQ 1. What is a portfolio? Why is diversification beneficial?


DQ 2. Describe in your own words what is meant by the term efficient capital market. What is arbitrage?

Solution Description

According to Emery, Finnerty, and Stowe (2007), portfolio is investing in a group of securities instead of investing in one security. Diversification is very