As Diversification Increases, the Total Variance of a Portfolio Approaches

question 64

Multiple Choice

As diversification increases, the total variance of a portfolio approaches

• A)0.
• B)1.
• C)the variance of the market portfolio.
• D)infinity.

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Definitions:

Workforce Planning

The strategic process of analyzing current workforce capabilities and determining future workforce requirements to meet organizational goals.

Deming

Refers to W. Edwards Deming, an American engineer and statistician known for his work in quality management and process improvement.

Quality

The degree to which a product, service, or process meets specified standards or fulfills customer requirements.

Money's Worth

The value received for the amount of money spent.