Question: Is there a limit to risk diversification in reducing the total risk on a portfolio? (only one correct answer.) Select one: o a. Yes, because
Is there a limit to risk diversification in reducing the total risk on a portfolio? (only one correct answer.) Select one: o a. Yes, because theoretically you need an infinite number of stocks for the risk to go to zero. Ob. Yes, because adding more stocks into the portfolio addresses the non-systematic risk component only. c. Yes, because diversification only addresses the systemic component of the portfolio risk. d. No, because it is very difficult to find two assets with their prices moving in the same direction by the same amount at the same time
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