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For a Diversified Portfolio Including a Large Number of Stocks,the

Question 26

Multiple Choice

For a diversified portfolio including a large number of stocks,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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