The Variance of a Portfolio Containing N Assets with Independent

question 62

Multiple Choice

The variance of a portfolio containing n assets with independent returns:

• A) increases as n increases.
• B) decreases as n increases.
• C) is constant for any n greater than two.
• D) does not change in a predictable way when n increases.

---

Definitions:

Pelvic Nerves

Nerves located within the pelvic region, involved in controlling the bladder, bowel, and sexual functions.

Sacral Segments

Portions of the spinal cord that correspond to the sacral part of the vertebral column, which is crucial for transmitting nerve signals to and from the lower parts of the body.

Inhibitory Action Potentials

Electrical signals in neurons that decrease the likelihood of the neuron firing, thus reducing neuronal activity.

Sacral Region

The area of the body related to the sacrum, a triangular bone at the base of the spine formed by the fusion of five sacral vertebrae.