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.
In your own words, post a substantive response to the Discussion Board question(s) and comment on other postings. Your response should address the DB question(s) and move the conversation forward. You will be graded on the quality of your postings, including mastery of the concept as well as critical thinking. If asked for your opinion, do not simply state that it is a good or bad idea; elaborate on your reasons and argument. Include enough detail to substantiate your thinking as well as your position on the questions or comments.
For assistance with your assignment, please use your text, Web resources, and all course materials.