week 4 discussion fin 534>>>>>>>xoon only
A. Assume that you own a sizeable investment portfolio that is invested exclusively in a broad-based stock market index fund. Assume also that you contemplate adding a sizeable investment in the stock of the company that you have elected to use for Assignment 1 (which is due at the end of Week 10). What will happen to the overall riskiness of the portfolio, and why, with the addition of the new investment? What specific indicators support your conclusion? Should you make the additional investment – why or why not?