Question
As the number of securities in a portfolio increases, A) the variance of individual securities becomes negligible B) the covariance among individual securities becomes negligible
As the number of securities in a portfolio increases,
- A) the variance of individual securities becomes negligible
- B) the covariance among individual securities becomes negligible
- C) the variance of the portfolio becomes the average covariance
- D) the variance of the portfolio approaches zero
- E) both A and C
- F) both A and D
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Get StartedRecommended Textbook for
Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
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