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    Investments Study Set 2
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    Exam 8: Index Models
  5. Question
    As Diversification Increases,the Unsystematic Risk of a Portfolio Approaches ____________
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As Diversification Increases,the Unsystematic Risk of a Portfolio Approaches ____________

Question 82

Question 82

Multiple Choice

As diversification increases,the unsystematic risk of a portfolio approaches ____________.


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

Correct Answer:

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