Answer the True and False questions following each Picture. Circle + for True and 0 for false.

+ 0 1. The picture shows the impact of creating a portfolio of assets for the purpose of reducing stand alone risk of the individual assets in the portfolio.

+ 0 2. The firm that has invested in 15-20 securities has eliminated company-specific risk

Total portfolio risk Unsystematic risk (unique risk) Systematic risk (market risk) 1 Security 15-20 securities Number of securities 0