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Question 8 Not yet answered Marked out of 1.00 Diversification works because: Select one: a. Firm-specific risk can be never be reduced. b. Stocks earn

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Question 8 Not yet answered Marked out of 1.00 Diversification works because: Select one: a. Firm-specific risk can be never be reduced. b. Stocks earn higher returns than bonds. c. Forming stocks into portfolios reduces the standard deviation of returns for each stock. d. Unsystematic risk exists. e. Portfolios have higher returns than individual assets

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