Question: Suppose you are combining assets with low correlation to form a portfolio. How does the diversification change as you add assets? A, None of the
Suppose you are combining assets with low correlation to form a portfolio. How does the diversification change as you add assets?
A, None of the other answers
B, Diversification increases until the portfolio has no risk.
C, Diversification increases rapidly at first, but reaches a limit.
D, Diversification increases slowly at first, but rapidly after you reach a certain number of assets.
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