Start learning →

Roughly how many securities can diversify away most specific risk in developed markets such as the UK or US?

A2 to 3
B30 to 40
C300 to 400
D3000 or more
Answer & Solution
Correct answer: B. 30 to 40
A portfolio of approximately 30 to 40 securities in developed markets removes most diversifiable risk.
Practise this question with Quill — CA Final →

Keep practising Modern Portfolio Theory

Browse all Modern Portfolio Theory questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Modern Portfolio Theory lesson →
Related questions