Questions on investment

Every investor in the market wants maximum return on its investment with minimum risk as every return on assets associated with a risk in the stock market. This portfolio can be said to be sustainable and effective in the long run. The income on the securities will either increase or decrease depending with the risk associated with it. If the share price falls then the expected return of the share will decrease and when the price rises then the expected return will also increase. In order to minimize this risk and maintain the same level of expected return investors use Markowitz Diversification by adding a lowered or negatively related security in the portfolio which will diversify their risk as shown in figure 6. With the combination of these securities in the portfolio investors can