Question: Question 9 5 pts Which statement is TRUE? Proper diversification can eliminate systematic risk. Diversification always reduces the portfolio's expected return because it reduces the

Question 9 5 pts Which statement is TRUE? Proper diversification can eliminate systematic risk. Diversification always reduces the portfolio's expected return because it reduces the portfolio's total risk The measure of risk for a security held in a diversified portfolio is standard deviation All of these statements are false. A single stock contains significant idiosyncratic risk. So as more stocks are added to a portfolio Idiosyncratic increase

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