QUESTION 8 Empirically to achieve a diversified portfolio in the US, it requires O A....
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QUESTION 8 Empirically to achieve a diversified portfolio in the US, it requires O A. None of the options. O B. 25 stocks because it is a rule-of-thumb and the market variance is stable across time. O C. more stocks overtime because of the increasing idiosyncratic risks. O D. more stocks overtime because the correlations between stocks have experienced a rising trend. O E. It is hard to know because stock returns are too noisy to proxy for expected returns
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