If a stock portfolio is well-diversified then the portfolio


If a stock portfolio is well-diversified, then the portfolio variance is

A. will equal the variance of the most volatile stock in the portfolio.

B. must be equal to or greater than the variance of the least risky stock in the portfolio.

C. will be an arithmetic average of the variances of the individual securities in the portfolio.

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Financial Management: If a stock portfolio is well-diversified then the portfolio
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