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1 As diversification increases, the firm-specified risk of a portfolio approaches A. 0 . B. 1 . C. infinity. D. . E. . 2 As

1 As diversification increases, the firm-specified risk of a portfolio approaches A. 0 . B. 1 . C. infinity. D. . E. .

2 As diversification increases, the total variance of a portfolio approaches A. 0 . B. 1 . C. the variance of the market portfolio. D. infinity. E. None of the above are correct.

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