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Which of the following are reasons why investors are not compensated for unsystematic risk? 1. Investing in 20-30 stocks in many different industries will eliminate
Which of the following are reasons why investors are not compensated for unsystematic risk? 1. Investing in 20-30 stocks in many different industries will eliminate diversifiable risk. II. The transaction costs of diversification are very small. III. All risk can be eliminated through diversification. IV. It is very easy to eliminate a firm's unique risk. Multiple Choice I and IV only II and III only 10 0 0 0 0 I, II and IV only I, III and IV only I, II, III and IV
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