Portfolio theory has a very wide range of applications in the financial and business sectors. ? Explain the principles of diversification. ? Discuss at least three examples where portfolio theory is...

Deadline 15 March 2012 Word limit: 1,800 Please use Times New Roman, 12 point font, 1.5 line spacing. Topic: Mean-Variance Analysis ? Portfolio theory has a very wide range of applications in the financial and business sectors. ? Explain the principles of diversification. ? Discuss at least three examples where portfolio theory is applied in a practical setting. Please note: 1. The essay must note theoretical justifications alongside the practical considerations. 2. You must demonstrate reading and research well beyond the material discussed in lectures (attached). 3. Your essay will benefit from the inclusion of insights from academic and practitioner research. 4. Supporting your arguments with examples is especially important. 5. You should ensure careful citation of all paper and electronic sources of information, and include a list of references. (Harvard Referencing)