diversified? Suppose you only own micro cap stocks and penny cap stocks but you have a portfolio of about 30 of them, is this still considered diversified?
I know stocks like this can be very volatile, but shouldn't having many of them smooth out the fluctuations of the returns?
Anybody who replies with a research-based, academic answer will be greatly appreciated.
Thank you.
I know stocks like this can be very volatile, but shouldn't having many of them smooth out the fluctuations of the returns?
Anybody who replies with a research-based, academic answer will be greatly appreciated.
Thank you.