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    Financial Management Theory and Practice Study Set 1
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    What Happens to the Amount of Market Risk as the Number
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What Happens to the Amount of Market Risk as the Number

Question 49

Question 49

Multiple Choice

What happens to the amount of market risk as the number of assets in a portfolio increases?


A) It decreases.
B) It increases.
C) It remains constant.
D) It changes randomly.

Correct Answer:

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