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Choose the correct statements within Portfolio risk concept: 1) Total portfolio risk ( ) is equal to nonsystematic risk plus non-diversifiable risk. 2) Total portfolio
Choose the correct statements within Portfolio risk concept:
1) Total portfolio risk () is equal to nonsystematic risk plus non-diversifiable risk.
2) Total portfolio risk () is equal to systematic risk minus nonsystematic risk.
3) Adding assets to a portfolio can reduce its systematic risk.
4) Each new asset added to a portfolio will reduce its diversifiable risk, but after a certain amount of assets in portfolio this effect will be close to 0.
5) Market risk can be reduced to 0 by adding assets to a portfolio.
1, 3, 5 | ||
3, 4 | ||
2, 3, 5 | ||
1, 4 |
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