103
actively traded mining securities which have positive returns.
Among
them al_ethe oil comparies that r.e_.ently z_eported_oad prospects Oriental, Basic, Tr_ns-AsiaJ Sea-front, Land-oil.
--
Also included here
are a few big board mining such as Mar.eoppem,Benguet, Atlas and Lepanto.
Below the _d
over t/_eperiod.
line are securities that earned negative returns
They showed no apparent yield-misk relation.
Except
for four bi_ ]_ard comDan/es _hieh experienced unusual difficulties like the weak market for copper, the securities in this group a_e small and not very active mining.-companies such as Omieo, Samar _/ning, Abra N/ning, Great Pacific, American Asiatic, Acoje Mining_and Atok Big Wedge.
(PLease see Char_ 6.1.)
The secl_ities in the two uppem banks could be considered as two sets fo_ portfolio
choices
--
one_for the more secure assets ; the
other _ for gambling. The securities in the two sets would not app_2m competitive with e_ch other if investoms behave as if they apportion their wealth to riser and less risky assets and then choose separately a portfolio from each set.
_en
many investors behave this way, the
securities in the two sets will be.less competitive than the securities Jm a set.
This will be _efleeted in a yield-risk relation that will be
stronger for each set than fo_ the total available securities.
In fact,
this see_s to be the ease as shown by the securities in the two bands we drew roughly. within each band.
There is a positive relation between yield and rlsk