If you could only hold five stocks and wanted to eliminate as much portfolio variation as possible, how would you construct the portfolio?

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If you could only hold five stocks and wanted to eliminate as much portfolio variation as possible, how would you construct the portfolio?

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Running head: PORTFOLIO C ONSTRUC TION

How to Construct a Portfolio
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PORTFOLIO CONSTR UCTION

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How to Construct a Portfolio
Portfolio construction is an entirely different skill from stock picking. If one is not
careful, it's possible to be a brilliant stock picker and still construct a portfolio that's a bad bet on
a risk-adjusted basis. Unless follow a strict buy-and-hold-forever strategy, a stock portfolio
requires maintenance. If the stocks are extremely ...

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