Question: Which statement is (are) true? (A)The more negatively correlated, the greater the diversification effect. (B) A well-diversified portfolio has negligible unsystematic risk (C) Discount bonds

Which statement is (are) true?

(A)The more negatively correlated, the greater the diversification effect. (B) A well-diversified portfolio has negligible unsystematic risk (C) Discount bonds have the yield to maturity less than the coupon rate. (D) (A) and (B) (E) (B) and (C)

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