As the number of assets held in a portfolio increases, the variance of return on the portfolio becomes more dependent on the covariances between the individual assets and less dependent on the variances of the individual assets.

Name: As the number of assets held in a portfolio increases, the variance of return on the portfolio becomes more dependent on the covariances between the individual assets and less dependent on the variances of the individual assets.
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Question

Quizplus · Accepted Answer

The Answer is True

As the Number of Assets Held in a Portfolio Increases