Question: What statement regarding random diversification is valid? a ) Investment characteristics are considered important in random diversification. b ) Its net benefit eventually disappears as
What statement regarding random diversification is valid?
a Investment characteristics are considered important in random
diversification.
b Its net benefit eventually disappears as more securities are added.
c If done correctly, it can eliminate all risk in a portfolio.
d It eventually removes all company specific risk from a portfolio.
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