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Indicate whether each of the following 7 statements is TRUE or FALSE by writing (or circling) the word TRUE or FALSE on your answer sheet.

Indicate whether each of the following 7 statements is TRUE or FALSE by writing

(or circling) the word TRUE or FALSE on your answer sheet. Then provide an

explanation for your answer within 8 lines

1. In the presence of diversification benefits, when we combine two assets together into a portfolio, the systematic risk of the portfolio will be less than the weighted average systematic risk of the individual assets in the portfolio

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