Multiple Choice
An increase in the number of corporations in a portfolio from 110 to 120 reduces
A) market risk by more than an increase from 1 to 10.
B) market risk by less than an increase from 1 to 10.
C) firm-specific risk by more than an increase from 1 to 10.
D) firm-specific risk by less than an increase from 1 to 10.
Correct Answer:
Verified
Correct Answer:
Verified
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