Question: Which statement about portfolio diversification is true? a. The risk-reducing benefits of diversification will not occur if the risky assets are not correlated . b.

 Which statement about portfolio diversification is true? a. The risk-reducing benefits

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

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