Select the TRUE statement regarding diversification Group of answer choices a) Unsystematic risk of a portfolio cannot
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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 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
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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