As the number of stocks in a portfolio increases, _______________. a. Firm-specific risk increases b. Systematic risk

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As the number of stocks in a portfolio increases, _______________.

a. Firm-specific risk increases

b. Systematic risk becomes zero

c. Systematic risk decreases and returns increase

d. Firm-specific risk is reduced but systematic risk remains

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Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

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Question Posted: Jun 23, 2022 02:52 AM

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As the number of stocks in a portfolio increases, _______________. a. Firm-specific risk increases b. Systematic risk

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c Systematic risk decreases and returns increase The re...View the full answer

Principles Of Finance

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