Please use this identifier to cite or link to this item: http://hdl.handle.net/11718/9680
Title: How many securities make a diversified portfolio: KLSE stocks?
Authors: Gupta, G. S.
Khoon, Ch'ng Huck
Shahnon, Suhaimi
Keywords: Securities;Portfolio;KLSE
Issue Date: 15-Oct-2001
Abstract: The paper examines the relationship between the portfolio risk and the number of stock in a portfolio for a given portfolio return across portfolio of the Malaysian stock during the period September 1988 through June 1997 to determine the optimum size for portfolio of stocks. A sample of 213 stock 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.
Description: Gupta, G.S et al. (Jan 2001) How many securities make a diversified portfolio: KLSE stocks? Asian Academy of Management Journal, Vol. 6, No. 1,
URI: http://hdl.handle.net/11718/9680
Appears in Collections:Journal Articles

Files in This Item:
File Description SizeFormat 
Howmanysecuritiesmake.pdf
  Restricted Access
2.83 MBAdobe PDFView/Open Request a copy


Items in IIMA Institutional Repository are protected by copyright, with all rights reserved, unless otherwise indicated.