As portfolio size increases, the variance of the error term generally
A) increases
B) decreases
C) approaches 1.0
D) becomes erratic
Correct Answer:
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Q13: Without knowing beta, determining portfolio variance with
Q14: Securities A, B, and C have betas
Q15: Securities A, B, and C have betas
Q16: A diversified portfolio has a beta of
Q17: Security A has a beta of 1.2;
Q19: The least risk portfolio is called the
A)
Q20: Industry effects are associated with
A) the single
Q21: COV (A,B) is equal to
A) the product
Q22: The covariance between a constant and a
Q23: The covariance between a security's returns and
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