Question: Which statement is correct? a) As more securities are added to a portfolio, total risk would be expeted to fall at an increasing rate. b)

Which statement is correct?

a) As more securities are added to a portfolio, total risk would be expeted to fall at an increasing rate.

b) The measure of risk for a security held in diversified portfolio is standard deviation.

c) Proper diversification can reduce or eliminate systematic risk.

d) Diversification reduces the portfolio's expected return because it reduces the portfolio's total risk.

e) All of these statement are false

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