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Select the TRUE statement regarding diversification Group of answer choices a) Unsystematic risk of a portfolio cannot be reduced through diversification e) A well-diversified portfolio

Select the TRUE statement regarding diversification

Group of answer choices

a) Unsystematic risk of a portfolio cannot be reduced through diversification

e) A well-diversified portfolio of stocks can completely eliminate risk

d) Diversification acts to reduce risk if the returns of assets are not perfectly correlated

c) Diversification works best when the returns of the assets are highly, positively correlated

b) Diversification only reduces systematic risk

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