I. Multiple-choice questions Ch ers the question lease writs wer 11 12 13 14 5 wer Diversification reduces the risk of a portfolio because f the pontfolio A) stocks do not move identically 3) stocks have common risks C) stocks are fully predictable D) stocks are not affected by the market , and some of the risks are averaged out You expect General Motors (GM) to have a beta of 1,3 over the next year and the bets of Exso XOM)tobe 0.9 over the next year Also, you expect the volatility ofGeneral Motr5bbe 40% of Exxon Mobil to be 30% over the next year. which stock has mer aytmatc na?"bt aid Aar more total risk? A) XOM, GM (8) XOM. XOM (CGM, XOM (D)GM GM If you build a large enough pontfolio, you can diversity away all because sach basic needs do not o away (A) high (B) low (C) segative ) in that sell bouschold peoduts