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If a large number of diverse securities are added to a portfolio comprised of three stocks, then the: weighted average expected return goes to zero.
If a large number of diverse securities are added to a portfolio comprised of three stocks, then the:
weighted average expected return goes to zero.
return of the portfolio goes to zero.
return on the portfolio will equal the risk-free rate.
weighted average of the APT factor betas goes to zero.
weighted average of the unsystematic risk goes to zero.
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