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Diversification works because: Select one: O a. Firm-specific risk can be never be reduced. O b. Portfolios have higher returns than individual assets O c.

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Diversification works because: Select one: O a. Firm-specific risk can be never be reduced. O b. Portfolios have higher returns than individual assets O c. Stocks earn higher returns than bonds. O d. Forming stocks into portfolios reduces the standard deviation of returns for each stock. O e. Unsystematic risk exists

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