Question: Briefly describe modern portfolio theory and
relate it to the approaches supported by Walt and Shane. Be sure to
mention diversifiable risk, undiversifiable risk, and total risk,
along with the role of beta.
Walt Davies and Shane O’Brien are district managers for Lee,
Inc. Over time, as they moved through the firm’s sales
organization, they became close friends. Walt, who is 33 years old,
currently lives in Princeton, New Jersey. Shane, who is 35, lives
in Houston, Texas. Recently,...