ABSTRACT
Our goal in this chapter is to investigate how each of our 5 assets contributes to portfolio standard deviation. Why might we want to do that?
From a substantive perspective, we may want to ensure that our risk has not got too concentrated in one asset. Not only might this lead to a less diversified portfolio than we intended, but it also might indicate that our initial assumptions about a particular asset were wrong, or at least, have become less right over time.
