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Please choose the only incorrect statement regarding portfolio diversification. A portfolio manager should: a. keep selectively adding a large number of securities with the lowest

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Please choose the only incorrect statement regarding portfolio diversification. A portfolio manager should: a. keep selectively adding a large number of securities with the lowest possible covariance with the portfolio b. eliminate firm specific risk by investing in a large number of stocks in different sectors of the economy c. know that the market will not pay a premium for diversifiable risks d. eliminate market risk by shorting the market benchmark index

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