As We Increase the Number of Stocks in a Portfolio,the

question 12

Multiple Choice

As we increase the number of stocks in a portfolio,the standard deviation of returns of the portfolio

• A)increases.
• B)remains unchanged.
• C)decreases.
• D)none of the above

---

Definitions:

Ice Cores

Cylinder-shaped samples from ice sheets or glaciers that scientists study to understand past climates.

Tree Rings

The concentric rings on the cross-section of a tree trunk, representing a record of a tree's age and the conditions under which it grew.

Paleozoic

An era in the geologic time scale, approximately 541 to 252 million years ago, marked by the early development of life, including the Cambrian explosion.

Geologic Timescale

A system of chronological measurement that relates stratigraphy to time, used by geologists, paleontologists, and other Earth scientists to describe the timing and relationships between events that have occurred during Earth's history.