Question: Diversification works because Select one: O a. Unsystematic risk exists. O b. Stocks earn higher returns than bonds. oc Portfolios have higher returns than individual

Diversification works because Select one: O a. Unsystematic risk exists. O

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

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