S Indicate whether the following statements are true or false. a. Investors prefer diversified companies because they are less risky. b. If stocks were perfectly positively correlated, diversification would not reduce risk. c. Diversification over a large number of assets completely eliminates risk. d. Diversification works only when assets are uncorrelated. e. Diversification reduces systematic risk. f. A stock with a low standard deviation always contributes less to portfolio risk than a stock with a higher standard deviation. g. The contribution of a stock to the risk of a well-diversified portfolio depends on its market risk.

Indicate whether the following statements are true or false