Multiple Choice
For a diversified portfolio including a large number of equities, 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.
Correct Answer:

Verified
Correct Answer:
Verified
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