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

question 45

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 above

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Definitions:

Supply Chain

The entire network of entities, directly or indirectly interlinked and interdependent, involved in producing and delivering a product or service from suppliers to the end consumer.

Major Components

The primary elements or parts that make up a product or system, critical for its operation or functionality.

Overall Goal

The primary, overarching aim or objective that an organization or individual strives to achieve, guiding decision-making and strategy formulation.

Global Complementation Strategy

An approach in international business where a company strategically places different parts of its production in different countries to maximize efficiency and minimize costs.