As the number of assets in an equally weighted portfolio increases, the contribution of each individual assets

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As the number of assets in an equally weighted portfolio increases, the contribution of each individual asset’s variance to the volatility of the portfolio:

A. Increases.

B. Decreases.

C. Remains the same.

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Related Book For answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 21, 2024 07:00 AM

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As the number of assets in an equally weighted portfolio increases, the contribution of each individual assets

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B is correct The contribution of each individual assets variance or standard deviation to th...View the full answer

Investments Principles Of Portfolio And Equity Analysis

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