a. What happens to the standard deviation of return for a portfolio if we increase the number

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a. What happens to the standard deviation of return for a portfolio if we increase the number of securities in the portfolio?

b. What is the principle of diversification?

c. Why is some risk diversifiable?

d. Why can’t systematic risk be diversified away?

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Essentials Of Corporate Finance

ISBN: 9781265414962

11th Edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Jan 02, 2023 07:08 AM

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a. What happens to the standard deviation of return for a portfolio if we increase the number

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a As the number of securities in a portfolio increases the standard deviation of returns usually dec...View the full answer

Essentials Of Corporate Finance

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