Abstract:
In this research quantitative work is done for an investor who has little knowledge of stocks and wants to increase his returns through investing in stock market.
Any investor at any part of the planet earth he may be, he should not invest his money in one stock only rather he should remain diversified across different sectors and types of stocks by making a portfolio. Investor should always prefer to invest in blue chip stocks.
In this research it was concluded that an investor who invested in six different portfolios selected from a sample of nine companies is likely to attain huge jump in portfolio value only if he is diversified. Hence it is concluded that investment in stock portfolio increases the return.
