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+ If you add enough stocks in your portfolio, you can diversify away all risk. Group of answer choices True False + Consider a risky

+ If you add enough stocks in your portfolio, you can diversify away all risk.

Group of answer choices

  • True
  • False

+ Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $60,000 or $175,000, with equal probabilities of 0.5. If you require a return of 12%, how much are you willing to pay for this portfolio?

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