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QUESTION 3 Which statement about portfolio diversification is true? a. Proper diversification can eliminate systematic risk. b. The risk-reducing benefits of diversification will not occur

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QUESTION 3 Which statement about portfolio diversification is true? a. Proper diversification can eliminate systematic risk. b. The risk-reducing benefits of diversification will not occur if the risky assets are not correlated . c. Proper diversification can reduce the total risk to zero. d. Diversification could reduce a portfolio's total risk but does not affect the portfolio's expected return. e. None of the options

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