Question: 13. Which statement is TRUE regarding diversification? I. The greater the systematic risk, the lower the return required by the investor. II. The greater the

13. Which statement is TRUE regarding diversification? I. The greater the systematic risk, the lower the return required by the investor. II. The greater the diversifiable risk, the greater the return required by the investor. III. We are able to remove all systematic risk if enough stocks are added to a portfolio. IV. Systematic risk is diversifiable. A. B. C. D. E. Ionly I and II only I, II, and IV III and IV None of the above

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