Although he knows security returns are not independent, a colleague makes the claim that because of the

Question:

Although he knows security returns are not independent, a colleague makes the claim that because of the central limit theorem, if we diversify across a large number of investments, the standard deviation will eventually approach zero as n becomes large. Is he correct?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...