8 Which of the following statements is most correct concerning diversification and risk ut of question Select one: O a. Only wealthy investors can diversify their portfolios because a portfolio must contain at least 50 stocks to gain the benefits of diversification. b. Risk-averse investors often select portfolios that include only companies from the same industry group because the familiarity reduces the risk. O c. Proper diversification generally results in the elimination of risk. a risk-averse investors often choose companies from different industries for their portfolios because the correlation of returns is less than if all the companies came from the same industry 9 The capital asset pricing model 5 out of Select one: a. depicts the total risk of a security O b. measures risk as the coefficient of variation between security and market rates of return C. provides a risk-return trade off in which risk is measured in terms of beta d. provides a risk-return trade off in which risk is measured in terms of the market volatility question Previous page Next pag