QUESTION 6 Which one of the followings is not correct for diversification? O Diversification benefit may not be achieved by just holding a lot of assets. O For a well-diversified portfolio, the beta shouldn't be far away from 1. An international portfolio with a numerous countries of investments can benefit from diversification Unsystematic risk can not be diversified away O With diversification, expected returns should be correlated more with systemeatic risks than unsystematic risk. QUESTION 7 5 points The cost of preferred stock O is not related to dividend yield O is equal to the yield to maturity is highly dependent on the dividend O is independent of the stock's price decreases when tax rates increase