The Risk Averse or Risk Seeking Investor

1
The Risk Averse or Risk Seeking Investor

• Alex Tongchinsub
• Jasmine Williams
• Diana Yen

2
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).