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Technology Stocks : Dell Technologies Inc.
DELL 133.78-0.1%Nov 14 9:30 AM EST
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To: nihil who wrote (82308)11/25/1998 10:40:00 AM
From: Geoff Nunn  Read Replies (1) of 176387
 
The basic portfolio assumption is that diversification among stocks with low intercorrelations of returns produces a higher expected return than the expected return of any stock with a high variance.

Not true. The point of choosing stocks with low inter-correlations (so called Markowitz diversification) is to reduce risk without sacrificing expected return. Perhaps what you meant to suggest is that higher expected return per unit of risk can be achieved, according to conventional theory, using the low correlation approach.
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