As the Number of Securities in a Portfolio Is Increased

question 23

Multiple Choice

As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation?

• A)It increases at an increasing rate.
• B)It increases at a decreasing rate.
• C)It decreases at an increasing rate.
• D)It decreases at a decreasing rate.

---

Definitions:

Specific Action

A particular or distinct deed taken to achieve a goal or address a situation.

Prospecting

The process of searching for potential customers, clients, or buyers in order to develop new business.

Building Interest

The process of engaging an audience's attention and curiosity about a subject or activity.

Screening

The process of evaluating or testing something or someone to determine suitability for a specific purpose or condition.