Mechanics of Diversification
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.