Explain the effect of the portfolio on risk of a security


Discussion: Securities and their Valuation

What do you think portfolio theory means to the corporate investor? Be sure to include the following:

• The effect of the portfolio on risk of a security
• The effect of the portfolio on the overall cost of capital to the company

Enhance the Discussion Board by finding examples of portfolio theory that illustrate the risk and cost of capital.

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Finance Basics: Explain the effect of the portfolio on risk of a security
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