# Question: For the data in Table suppose an investor desires an

For the data in Table, suppose an investor desires an expected variance less than 8. What is the minimum number of securities for such a portfolio?

Number of Securities ... Expected Portfolio Variance

1 ........ 46.619

2 ........ 26.839

4 ........ 16.948

6 ........ 13.651

8 ........ 12.003

10 ........ 11.014

12 ........ 10.354

14 ........ 9.883

16 ........ 9.530

18 ........ 9.256

20 ........ 9.036

25 ........ 8.640

30 ........ 8.376

35 ........ 8.188

40 ........ 8.047

45 ........ 7.937

50 ........ 7.849

75 ........ 7.585

100 ........ 7.453

125 ........ 7.374

150 ........ 7.321

175 ........ 7.284

200 ........ 7.255

250 ........ 7.216

300 ........ 7.190

350 ........ 7.171

400 ........ 7.157

450 ........ 7.146

500 ........ 7.137

600 ........ 7.124

700 ........ 7.114

800 ........ 7.107

900 ........ 7.102

1000 ........ 7.097

Infinity ........ 7.058

Number of Securities ... Expected Portfolio Variance

1 ........ 46.619

2 ........ 26.839

4 ........ 16.948

6 ........ 13.651

8 ........ 12.003

10 ........ 11.014

12 ........ 10.354

14 ........ 9.883

16 ........ 9.530

18 ........ 9.256

20 ........ 9.036

25 ........ 8.640

30 ........ 8.376

35 ........ 8.188

40 ........ 8.047

45 ........ 7.937

50 ........ 7.849

75 ........ 7.585

100 ........ 7.453

125 ........ 7.374

150 ........ 7.321

175 ........ 7.284

200 ........ 7.255

250 ........ 7.216

300 ........ 7.190

350 ........ 7.171

400 ........ 7.157

450 ........ 7.146

500 ........ 7.137

600 ........ 7.124

700 ........ 7.114

800 ........ 7.107

900 ........ 7.102

1000 ........ 7.097

Infinity ........ 7.058

**View Solution:**## Answer to relevant Questions

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