In this problem you will generate a graph similar to Figure 6 8 The table below shows the standard deviation for various portfolios of stocks listed in Table 6 5 Plot the relationship between the number of stocks in the portfolio and the portfolios standard deviation Comment on how the resulting gr...

If you plot the relationship between the number of stocks and the portfolio standard deviation you w ...

In this problem you will generate a graph similar to Figure 6.8. The table below shows the

Question:

In this problem you will generate a graph similar to Figure 6.8. The table below shows the standard deviation for various portfolios of listed in Table 6.5. Plot the relationship between the number of in the and the portfolio’s standard deviation. Comment on how the resulting graph is similar to Figure 6.8 and how it is different from that figure. In answering this question, it may be helpful to you to examine the order of listed in Table 6.5 and compare that to the order in which were added to portfolios in Figure 6.8 and in the table below.
Stocks in the ............ Std. Deviation (%)
Anheuser-Busch ................. 16.1
AB + Coca Cola ............... 15.9
AB+Coke+Wendy’s .............. 15.1
AB+Coke+Wendy’s+Archer .......... 13.6
AB+Coke+Wendy’s+Archer+Gen. Motors ...... 13.1
AB+Coke+Wendy’s+Archer+GM+GE ...... 14.7
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...