Question: Select the TRUE statement regarding diversification Group of answer choices a) Unsystematic risk of a portfolio cannot be reduced through diversification c) Diversification works best

Select the TRUE statement regarding diversification

Group of answer choices

a) Unsystematic risk of a portfolio cannot be reduced through diversification

c) Diversification works best when the returns of the assets are highly, positively correlated

e) A well-diversified portfolio of stocks can completely eliminate risk

d) Diversification acts to reduce risk if the returns of assets are not perfectly correlated

b) Diversification only reduces systematic risk

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