ABSTRACT

Portfolio diversification is a type of investment that has a significant impact on investment risk and return. This study examines the impact of portfolio diversification on investment risks and returns. The analysis of variance (ANOVA) shows that considering the variances of the provided data there is significantly impact on overall risk among portfolios with different levels of diversification based on the available evidence. This analysis gives a clear demonstration of how ANOVA can be put to use to assess the significance of the overall risk associated with portfolio.