Explain approach-method of risk assessment

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You decided to try your luck in stock market by investing in stocks of a single company. Your friend is an investor in stock market for several years and he has investments in large diversified portfolio. You thought it would be good idea to discuss with your friend and get some information about stock market investment. Your friend advised you to invest in stocks of XYZ Co., and said that he was also considering to include stocks of XYZ Co. in his diversified portfolio. Clearly explain how your approach/method of risk assessment/computation of the returns of XYZ stocks differsfrom that of your friend who was considering to include stocks of XYZ Co. in his diversified portfolio.

Reference no: EM132932959

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