As We Add More Uncorrelated Stocks to a Portfolio Where

question 101

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 1,000 stocks
• D) at the outset