Multiple Choice
A well-diversified portfolio is defined as
A) one that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero.
B) one that contains securities from at least three different industry sectors.
C) a portfolio whose factor beta equals 1.0.
D) a portfolio that is equally weighted.
E) all of these.
Correct Answer:
Verified
Correct Answer:
Verified
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