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Question 9 1 pts Select all that are true with respect to systematic and unsystematic risk. Systematic risk is unimportant when estimating expected returns Unystematic
Question 9 1 pts Select all that are true with respect to systematic and unsystematic risk. Systematic risk is unimportant when estimating expected returns Unystematic risk is unimportant when estimating expected returns Total risk (Systematic + Unsystematic) is the key risk measure one needs to estimate expected returns In a well diversified portfolio, unsystematic risk is largely eliminated A key reason why the risk-return tradeoffis better for portfolios than in individual assets is because combining assets into portfolios reduces unsystematic risk A key reason why the risk-return tradeoff is better for portfolios than in individual assets is because combining assets into portfolios reduces systematic risk Question 10 1 pts Select all that are true. The risk-return tradeoff is worse for individual assets than for portfolios because combining assets into portfolios reduces risk without reducing expected returns by combining assets into portfolios, one can hold risk constant and get a higher expected return by combining assets into portfolios, one can hold expected return constant and reduce risk by combining assets into portfolios, one eliminates risk and still has a positive expected return
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