A portfolio is a group of assets in which investors prefer todeposit. The portfolio gives an opportunity to diversify risk.Diversification of risk does not mean that there will be anelimination of risk as future is always uncertain. With everyasset, there is an attachment of systematic and unsystematic risk.Even an optimum portfolio cannot eliminate market risk, but canonly reduce or eliminate the diversifiable risk. a. Help Mr. Xprospective investor to manage return and risk of a securityportfolio. b. Discuss the different types of inherent risks.
