Interview Question: Riskless Investing

Sample Question #141 (finance – portfolio theory)

How many stocks should you own in a stock portfolio so the expected portfolio risk is zero?

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3 Responses to Interview Question: Riskless Investing

  1. 英瑞 says:

    Only the system risks left. 

  2. Cindy says:

    30 OR 8?

  3. Brett says:

    The task is impossible, since you cannot construct a portfolio with zero expected risk: there’s always systematic risk no matter what you do, i.e., the market can crash as a whole. Even so-called risk-neutral portfolios often ignore (intentionally or otherwise) risks such as liquidity risk and tax policy risk, and these risks simply can never be eliminated.

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