As Diversification Increases,the Total Variance of a Portfolio Approaches ____________

question 29

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
• E) none of these

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Definitions:

1910s

The decade ranging from 1910 to 1919, characterized by significant events such as World War I and the beginning of the Russian Revolution.

Social Problem

A social issue, often referred to as a problem or controversy, is an aspect of society that people are concerned about and would like to change.

Middle Class

A social class traditionally including individuals and families with moderate income and wealth; typically perceived as having stable employment, educational opportunities, and the ability to make economic investments.

Industrial Societies

Societies characterized by the large-scale production of goods through mechanized and technological processes, often associated with urbanization and changes in social structures.