Question
Many investors invest in 30-40 different securities. Diversification works for these investors because: A. Investors can significantly reduce unsystematic risk. B. Firm-specific risk can be
Many investors invest in 30-40 different securities. Diversification works for these investors because:
| A. | Investors can significantly reduce unsystematic risk.
| |
| B. | Firm-specific risk can be reduced for large stocks only.
. | |
| C. | Market risk can be reduced through diversification. | |
| D. | Forming stocks into portfolios reduces the standard deviation of returns for each stock.
|
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Financial Accounting A Focus On Interpretation And Analysis
Authors: Richard F Kochanek, A Douglas Hillman
7th Edition
1111061750, 9781111061753
