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    Exam 8: Index Models
  5. Question
    As Diversification Increases,the Firm-Specific Risk of a Portfolio Approaches ____________
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As Diversification Increases,the Firm-Specific Risk of a Portfolio Approaches ____________

Question 10

Question 10

Multiple Choice

As diversification increases,the firm-specific risk of a portfolio approaches ____________.


A) 0
B) 1
C) infinity
D) n-1 * n
E) none of the above

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