Abstract

While "portfolio model" has been applied commonly in the choice of portfolio investment, whether the theory can be applied to the strategy of diversification in real (or direct) investment is still questionable. The main purpose of this paper is to discuss the feasibility of the Markowiz's "portfolio model" to be applied on the strategy of diversification in direct investment. Using the survey, the paper performs tests and discusses whether the basic assumptions of "portfolio model" are satisfied on the strategy of diversification in direct investment or not.