Suppose you identify 10 possible investments whose payoffs are completely independent of one another. All the investments have the same expected value and standard deviation. You have $10,000 to invest. In terms of risk, would the benefit of spreading your $10,000 across all 10 investments be the same, greater, or smaller compared with dividing your funds between just two investments? No. Eecause the payoffs from these investments are independent, it doesn't matter how many investments you spread your $10,000 across, as there is no benefit in terms of reduced risk. Yes The gains from spreading your investments would be larger if you spread the $10,000 across 10 investments. No. Because in this case diversification does not help to spread risk, it doesn't matter how many investments you spread your $10,000 acros5. Yes, Because the payoffs from these investments are negatively correlated with one another, spreading your $10.000 across a larger number of investments reduces your risk