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Consider the statements below and choose the answer that is correct. The total risk of a portfolio can be erased if an investor holds a

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Consider the statements below and choose the answer that is correct. The total risk of a portfolio can be erased if an investor holds a very large and well diversified portfolio of stocks Purchasing power risk can be eliminated through diversification, Most (and maybe all) timspecific risk can be erased if an investor holds a very large, well-diversified portfolio of stocks Joan can eliminate all of the systematic risk in her portfolio if she holds a portfolio of 100 stocks from all different industries

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