The present study deals with the normal distribution of risk and return of the capital market of Bangladesh. Normal … that if an investor wants to get higher return then he must consider higher risk, this denotes to the normal distribution … of risk and return. This study has used a set of parametric and non-parametric tools to examine the returns calculated …

2014 have been considered. The diversification effect is measured by the number of stocks, regressions of portfolio risk … portfolios and the dependence of portfolio risk on number of stocks is71.35% for naive portfolios and 70.75% for differently …-weighted portfolios. The dependence of portfolio risk on concentration of stocks is 63.32% for naïve portfolios and 66.58% for differently …