Question: Choose the correct statement regarding diversification. (This is a multiple answer format question which means you should check all than apply...there may be more than

 Choose the correct statement regarding diversification. (This is a multiple answer
format question which means you should check all than apply...there may be

Choose the correct statement regarding diversification. (This is a multiple answer format question which means you should check all than apply...there may be more than one correct response). We can eliminate most of our firm specific risk by holding a portfolio of stocks from a variety of industries We can eliminate most of our market risk by hold a portfolio of 5 stocks from a variety of industries We can eliminate most of our firm specific risk by holding a portfolio of 50 stocks from a variety of industries We can eliminate most of our market risk by holding a portfolio of 50 stocks from a variety of industries Consider the following four capital och att level of risk (Note -- no calculations are necessary this cuncta Project A Project Project Project CFO -25.000-25.000 - 50.000 -50.000 CF1 1.000 14.000 5.000 18.000 CF22.000 10,000 10.000 111.000 CF3 3.000 6.000 30.000 18.000 CF4 40.000 6.000 40.000 18.000 3 years 2.75 years 2.75 years 2.5 years k 10% 12% 12% 14% Project A Project B Project C Project D There is not enough information available to determine which project management feels is riskiest

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