Question: A well-diversified portfolio is defined as Multiple Choice one that is diversified over a large enough number of securities that the nonsystematic variance is essentially
A well-diversified portfolio is defined as Multiple Choice one that is diversified over a large enough number of securities that the nonsystematic variance is essentially zero. one that contains securities from at least three different industry sectors. a portfolio whose factor beta equals 1.0 a portfolio that is equally weighted.
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