A portfolio analysis can be performed in order to analyze how effective the NBA teams were during the 2016 season. It is possible to think of both Eastern and Western Conferences to be a benchmark that we can reference teams to. When we analyze each team's performance against the overall performance of the entire benchmark, it is possible to discover how effective and consistent teams are. This can tell us how risky or stable a team is, and how much of a pay off teams offer for being risky. With this we can find that the most stable teams in the Eastern Conference are Chicago and Atlanta, and in the Western Conference were New Orleans and Utah. On the other hand, the most volatile teams were Philadelphia and New York in the Eastern Conference, and Houston and LA Lakers in the Western Conference. Likewise, it can be found that the most representative teams for the performance of the Eastern Conference were Philadelphia and Miami, and for the Weste...
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