As We Add More Uncorrelated Stocks to a Portfolio Where

question 100

Multiple Choice

As we add more uncorrelated stocks to a portfolio where the stocks are held in equal weights,the benefit of diversification is most dramatic:

• A)after 20 stocks have been added.
• B)when there are more than 500 stocks.
• C)when there are more than 1000 stocks.
• D)at the outset.
• E)when there are more than 100 stocks.

Understand the process of financial projections and their comparison to industry averages.

Understand the importance and components of a business plan.

Identify strategies for setting competitive prices and targeting the appropriate market.

Recognize the importance of the executive summary in a business plan.

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