Re: [ vuZs.net ] MGT201

By Investing in portfolio you can diversify your risk. If you invest in one stock it is just like put all eggs in one basket.

In case of one stock you can earn more but in case of down turn you will loose more.

In case of portfolio investment might be some of your stocks are gaining and some are loosing at the same time which will mitigate your losses.

Regards

Zubair Hussain

www.vuzs.net

On Tue, Dec 6, 2011 at 11:22 PM, bc100402534 Tahreem <bc100402534@vu.edu.pk> wrote:

Why an investor should invest his/her funds in a portfolio

rather than in thestocks of a single corporation

H Corporation's stock currently sells for Rs.20 a share. The stock just paid a dividend of Rs.2 a share (D_o = Rs.2). the dividend is expected to grow at a constant rate of 11% a year.

· What stock price is expected 1 year from now?

· What would be the required rate of return on company's stock?

Koi solve kardou yeh 2 q's 

K

Regards 

BS Accounting & Finance  {3rd Semester}

Overseas Kuwait (Q8)

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