Reduce Risk by Combining Risky Stocks for Investment

J Li
Towards Data Science
4 min readMay 2, 2018

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Photo by Nathan McBride on Unsplash

(this post is also available in my blog)

Risk-Return Trade-off

Risk and Return trade-off is well known in capitalism. You may have heard that, f you want higher return, you need take higher risk. That seems a golden rule. But there is a possibility to combine two or more risky stocks to build a portfolio that leads to lower risk but…

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