Dissertation - Can Investors Apply Modern Portfolio Theory To Achieve Higher Returns. An Empirical Study Into The Relationship Between Portfolio Size And Portfolio Return
Diversification is a rational investment strategy for the risk averse individual in a homogeneous securities market. In the light of this, the present paper examines risk, return and the prospect of portfolio diversification in financial market over the period 1990-2006. Essentially, the purpose of this dissertation is to investigate whether investors can apply Modern Portfolio theory in order to achieve higher return. The objective of this dissertation is to strengthen the existing empirical studies regarding the relationship between portfolio size and portfolio return, and between portfolio size and portfolio risk.