As Diversification Increases, the Total Variance of a Portfolio Approaches

question 41

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 the options

---

Definitions:

Wavy Underline

Highlighting often used in word processing software to indicate a potential spelling or grammar error.

Message List

A display or compilation of emails or messages within an application, typically organized in chronological order or by relevance.

SMTP

Simple Mail Transfer Protocol, a protocol used for sending email messages between servers on the internet.

Outgoing Email Servers

The servers used to send email, typically using the SMTP protocol, from an email client to the recipient's email server.