Question
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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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
