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Diversification works because: Select one: O a. Portfolios have higher returns than individual assets. O b. Forming stocks into portfolios reduces the standard deviation of

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

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