Question: Can you explain this one? Question 8 2 points Select all the INCORRECT statements O Diversification works only when assets returns are uncorrelated When an

Can you explain this one?

Can you explain this one? Question 8 2 points
Question 8 2 points Select all the INCORRECT statements O Diversification works only when assets returns are uncorrelated When an investor includes an infinity of stocks in her portfolio, the total risk of the portfolio approaches 0 When risk is measured using the standard deviation of returns, the total risk of a portfolio equals the weighted-average of the risk of the individual stocks in the portfolio When risk is measured using the standard deviation of returns, the total risk of a portfolio can be strictly lower than the risk O of each of the individual stocks in the portfolio A Moving to another question will save this response. Question 8 of 16

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