Chapter 6 of "Essentials of Finance" by Bodie, Kane, and Marcus. Diversification; efficient diversification; risky portfolios, investment opportunity set, mean-variance criterion; dominance; optimal risky portfolio; efficient frontier; factor models; single-factor model; security characteristic line.

Dr. Krassimir Petrov, Prince Sultan University
Associate Professor in Finance, PSU: Dr. Krassimir Petrov