Please select all correct statements.

Group of answer choices

To achieve a well-diversified portfolio, one should choose stocks with correlations close to +1 with each other.

Unsystematic risk is compensated for by the risk premium.

When measuring co-movement of two stocks, covariance is a better measure than correlation.

When computing the expected return on a portfolio of stocks the portfolio weights are based on the market value of the total shares held in each stock.

If a stock portfolio is well diversified, then the portfolio variance will be an arithmetic average of the variances of the individual securities in the portfolio.