Question: Which statement about portfolio diversification is true? a. Proper diversification can eliminate systematic risk. b. None of the options. c. The risk-reducing benefits of diversification

Which statement about portfolio diversification is true? a. Proper diversification can eliminate systematic risk. b. None of the options. c. The risk-reducing benefits of diversification will not occur if the risky assets are not correlated. d. Because diversification reduces a portfolio's total risk, it also reduces the portfolio's expected return. e. Proper diversification can reduce the total risk to zero
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