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Diversification works because: Select one: O a Stocks earn higher returns than bonds. O b. Portfolios have higher returns than individual assets. O c Unsystematic

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Diversification works because: Select one: O a Stocks earn higher returns than bonds. O b. Portfolios have higher returns than individual assets. O c Unsystematic risk exists. O d. Firm-specific risk can be never be reduced. no e Forming stocks into portfolios reduces the standard deviation of returns for each stock

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