Abstract: This case documents Lydia’s initial investment portfolio. Althought Lydia is a successful financial analyst working for a large investment firm on the Wall Street in United States of American, her initial investment portfolio is full of problems and disadvantages. She only considers how to maxmize the total return of the investment portfolio and ignores the risk of all the investments. Her optimal investment portfolio is to invest her money into the stock that promises the highest expected return.The investment strategy causes some investment lost for her. Lydia plans to improve her initial investment portfolio by considering the investment risk. Key words: portfolio management; stock investment; investment portfolio 1.版权所有：本案例由威尼斯欢乐娱人城·首页黄威编写，版权归作者和威尼斯欢乐娱人城·首页所有。未经允许，本案例的所有部分都不能以任何方式与手段擅自复制或传播。 2.本案例授权中国管理案例共享中心使用。 3.由于企业保密的要求，在本案例中对有关名称、数据等做了必要的掩饰性处理。 4.本案例只供课堂讨论之用，并无意暗示或说明某种管理行为是否有效。