1. Market risk is also referred to as (Single Choice) systematic risk or diversifiable risk systematic risk or nondiversifiable risk unique risk or nondiversifable risk unique risk or diversifiable risk 2. The variance of a portfolio of risky securities (Single Choice) is a weighted sum of the securities' variances. is the sum of the securities' variances. is the weighted sum of the securities' variances and covariances is the sum of the securities' covariances None of the options are correct 3. Which statement about portfolio diversification is correct? (Single Choice) Proper diversification can eliminate systematic risk The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual securities have been purchased Because diversification reduces a portfolio's total risk, it necessarily reduces the portfolio's expected return. Typically, as more securities are added to a portfolio, total risk would be expected to decrease at a decreasing rate. None of the options are correct