Which statement about portfolio diversification is correct a Proper diversification can reduce or eliminate systematic risk b Diversification reduces the portfolios expected return because it reduces a portfolios total risk c As more securities are added to a portfolio, total risk typically would b...

c As more securities are added to a portfolio total risk typically would be ex ...

Which statement about portfolio diversification is correct? a. Proper diversification can reduce or eliminate systematic risk. b.

Question:

Which statement about diversification is correct?
a. Proper diversification can reduce or eliminate systematic risk.
b. Diversification reduces the portfolio’s because it reduces a portfolio’s total risk.
c. As more securities are added to a total risk typically would be expected to fall at a decreasing rate.
d. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...