19For a Diversified Portfolio Including a Large Number of Equitys,the

question 7

Multiple Choice

19.For a diversified portfolio including a large number of equitys,the:

• A)weighted average expected return goes to zero.
• B)weighted average of the betas goes to zero.
• C)weighted average of the unsystematic risk goes to zero.
• D)return of the portfolio goes to zero.
• E)return on the portfolio equals the risk-free rate.

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Definitions:

Important Results

Significant outcomes or findings that emerge from research or experiments, often contributing new knowledge or understanding.

Study Conclusions

The final statements of a research project summarizing findings and the implications of those results.

Standard Pattern

a recognized or widely used arrangement, organization, or structure for something.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, experimentation, and analysis to form and test hypotheses.