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Which of the following is most correct about risk diversification by forming a portfolio? a. Unique risk will be eliminated when there are about 40
Which of the following is most correct about risk diversification by forming a portfolio?
a. Unique risk will be eliminated when there are about 40 stocks in the portfolio.
b. Systematic risk will be eliminated when there are about 40 stocks in the portfolio.
c. Spreading an investment across many different stocks will eliminate all of the total risk.
d. The portfolio risk can be reduced to zero.
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