The principle of diversification tells you that ______.

Group of answer choices

spreading an investment across many diverse assets will eliminate some of the risk

spreading an investment across many diverse assets will eliminate all of the risk

spreading an investment across many diverse assets can not eliminate risk in an efficient market

concentrating on two or three good stocks can diversify your portfolio properly

The linear relation between an assets required return and its beta coefficient is the ______.

Group of answer choices

reward to risk ratio

portfolio weight

portfolio risk

security market line

The normal distribution is useful in analyzing security returns because ______.

Group of answer choices

you frequently deal with finite data sets

of its bell-shaped appearance

it can be completely described by its mean and standard deviation

the distribution of security returns usually differs from a normal distribution