The Variance of a Portfolio of Assets

question 56

Multiple Choice

The variance of a portfolio of assets:

• A)Decreases as the number of assets increases
• B)Increases as the number of assets increases
• C)Approaches 0 as the number of assets decreases
• D)Approaches 1 as the number of assets increases

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Definitions:

Introspection

The examination of one's own conscious thoughts and feelings, often as a method in psychological research to understand mental states and processes.

Critical Thinking

The disciplined mental process of actively analyzing, synthesizing, and evaluating information to reach conclusions or solve problems.

Musical Sounds

Sounds that are pleasant and harmonious, structured in a way to produce rhythms, melodies, or harmonies that are considered music.

Qualifying Exams

Examinations that are designed to test a student's mastery of specific fields of knowledge, often required for advancement in academic settings.