Is the following statements true/false

1. The relative decrease of unsystematic risk when a new risky assets is added is the same for a portfolio that consists of 10 risky assets and a portfolio that consists of 100 risky assets

2. Portfolios that include more individual risky assets that are not perfectly correlated have a lower systematic risk

3. Total risk approaches systematic risk if more risky assets are added to the portfolio

4. The Sharpe ratio of a portfolio is affected by its level of unsystematic risk

Answer rating: 100% (QA)

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