Question: Which statement about portfolio diversification is true? a. Because diversification reduces a portfolio's total risk, it also reduces the portfolio's expected return. b. None of

Which statement about portfolio diversification is true?

a. Because diversification reduces a portfolio's total risk, it also reduces the portfolio's expected return.

b. None of the options.

c. The risk-reducing benefits of diversification will not occur if the risky assets are not correlated .

d. Proper diversification can reduce the total risk to zero.

e. Proper diversification can not eliminate systematic risk.

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