How does diversification work? Developed in conjunction with Wharton Professor, Donald Keim, this application introduces students to the mechanics of diversification in an engaging format using three interactive tools:

• Variance-covariance matrix
• Two-asset opportunity set
• Limits of diversification graph

Select the Slide Deck for a guided assignment on this topic. Then use the Activity buttons to try the exercises yourself. Your instructor may have additional guidance regarding the use of this Teaching Tool.