Question: TRUE/FALSE : PLEASE GIVE REASON WHY 1. Nondiversifiable risk, which is measured by beta, can be lowered by adding a greater variety of stocks to

TRUE/FALSE : PLEASE GIVE REASON WHY

1. Nondiversifiable risk, which is measured by beta, can be lowered by adding a greater variety of stocks to a portfolio

2. Diversifiable risk can be lowered by adding a greater variety of stocks to a portfolio

3. A stock's beta is more relevant as a measure of risk to an investor with a welldiversified portfolio than to an investor who holds only one stock.

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