As Diversification Increases, the Unsystematic Risk of a Portfolio Approaches

question 42

Multiple Choice

As diversification increases, the unsystematic risk of a portfolio approaches

• A)1.
• B)0.
• C)infinity.
• D)(n - 1) * n.

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Definitions:

LSD

A powerful psychedelic drug known for altering perception, mood, and a variety of cognitive processes.

Alpha Waves

Patterns of brain activity that signify a relaxed, wakeful state, typically observed via EEG in the posterior part of the brain.

Delta Waves

Slow brain waves predominantly present during deep sleep or in advanced stages of meditation, associated with regeneration and healing.

REM Sleep

A sleep phase characterized by rapid eye movements, more vivid dreaming, and increased brain activity.