Question: Diversification works because: Select one: a. Portfolios have higher returns than individual assets. O b. Stocks earn higher returns than bonds. O c. Forming stocks

Diversification works because: Select one: a. Portfolios have higher returns than

Diversification works because: Select one: a. Portfolios have higher returns than individual assets. O b. Stocks earn higher returns than bonds. O c. Forming stocks into portfolios reduces the standard deviation of returns for each stock. O d. Firm-specific risk can be never be reduced. e. Unsystematic risk exists

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