How Many Securities Make A Diversified Portfolio In Klse Stocks?
The paper examines the relationship between the portfolio risk and the number of stocks in a portfolio for a given portfolio return across portfolios of the Malaysian stocks during the period September 1988 through June 1997 to determine the optimum size for a portfolio of stocks. A sample of 213...
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| Format: | Article |
| Language: | en |
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Asian Academy of Management (AAM)
2001
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| Subjects: | |
| Online Access: | http://eprints.usm.my/35471/1/6-1-5.pdf http://eprints.usm.my/35471/ http://web.usm.my/aamj/6.1.2001/6-1-5.pdf |
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| _version_ | 1834500699310784512 |
|---|---|
| author | G.S. Gupta, G.S. Gupta Ch’ng , Huck Khoon Shahnon, Suhaimi |
| author_facet | G.S. Gupta, G.S. Gupta Ch’ng , Huck Khoon Shahnon, Suhaimi |
| author_sort | G.S. Gupta, G.S. Gupta |
| building | Hamzah Sendut Library |
| collection | Institutional Repository |
| content_provider | Universiti Sains Malaysia |
| content_source | USM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | The paper examines the relationship between the portfolio risk and the number of
stocks in a portfolio for a given portfolio return across portfolios of the Malaysian
stocks during the period September 1988 through June 1997 to determine the
optimum size for a portfolio of stocks. A sample of 213 stocks traded on the Kuala
Lumpur Stock Exchange (KLSE) are considered to form sets of portfolios using the
Random Diversification Approach based on the Statman (1987) technique. The
study has incorporated an additional statistical test to supplement the Statman’s
approach. On average, a well-diversified portfolio of the Malaysian stocks is found
to contain at least 27 randomly chosen securities. The study is extended to
determine the diversified portfolio’s size for each of the lending and borrowing
investors based on the Statman (1987) methodology. A portfolio of 30 securities is
found to give a well diversified portfolio for the borrowing investors and of 50
securities for the lending investors. |
| format | Article |
| id | my.usm.eprints.35471 |
| institution | Universiti Sains Malaysia |
| language | en |
| publishDate | 2001 |
| publisher | Asian Academy of Management (AAM) |
| record_format | eprints |
| spelling | my.usm.eprints.35471 http://eprints.usm.my/35471/ How Many Securities Make A Diversified Portfolio In Klse Stocks? G.S. Gupta, G.S. Gupta Ch’ng , Huck Khoon Shahnon, Suhaimi HD28-70 Management. Industrial Management The paper examines the relationship between the portfolio risk and the number of stocks in a portfolio for a given portfolio return across portfolios of the Malaysian stocks during the period September 1988 through June 1997 to determine the optimum size for a portfolio of stocks. A sample of 213 stocks traded on the Kuala Lumpur Stock Exchange (KLSE) are considered to form sets of portfolios using the Random Diversification Approach based on the Statman (1987) technique. The study has incorporated an additional statistical test to supplement the Statman’s approach. On average, a well-diversified portfolio of the Malaysian stocks is found to contain at least 27 randomly chosen securities. The study is extended to determine the diversified portfolio’s size for each of the lending and borrowing investors based on the Statman (1987) methodology. A portfolio of 30 securities is found to give a well diversified portfolio for the borrowing investors and of 50 securities for the lending investors. Asian Academy of Management (AAM) 2001 Article PeerReviewed application/pdf en http://eprints.usm.my/35471/1/6-1-5.pdf G.S. Gupta, G.S. Gupta and Ch’ng , Huck Khoon and Shahnon, Suhaimi (2001) How Many Securities Make A Diversified Portfolio In Klse Stocks? Asian Academy of Management Journal (AAMJ), 6 (1). pp. 1-17. ISSN 1394-2603 http://web.usm.my/aamj/6.1.2001/6-1-5.pdf |
| spellingShingle | HD28-70 Management. Industrial Management G.S. Gupta, G.S. Gupta Ch’ng , Huck Khoon Shahnon, Suhaimi How Many Securities Make A Diversified Portfolio In Klse Stocks? |
| title | How Many Securities Make A Diversified Portfolio In
Klse Stocks? |
| title_full | How Many Securities Make A Diversified Portfolio In
Klse Stocks? |
| title_fullStr | How Many Securities Make A Diversified Portfolio In
Klse Stocks? |
| title_full_unstemmed | How Many Securities Make A Diversified Portfolio In
Klse Stocks? |
| title_short | How Many Securities Make A Diversified Portfolio In
Klse Stocks? |
| title_sort | how many securities make a diversified portfolio in
klse stocks? |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/35471/1/6-1-5.pdf http://eprints.usm.my/35471/ http://web.usm.my/aamj/6.1.2001/6-1-5.pdf |
| url_provider | http://eprints.usm.my/ |