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Which of the following is the best definition of principle of diversification? O a. Positively sloped straight line displaying the relationship between expected return and

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Which of the following is the best definition of principle of diversification? O a. Positively sloped straight line displaying the relationship between expected return and beta. b. A risk that influences a large number of assets. Also called market risk. Principle stating that spreading an investment across a number of assets eliminates some, but not all of the risk. A theory showing that the expected return on any risky asset is a linear combination of various factors. . Od Oe. A risk that affects at most a small number of assets. Also called unique or asset-specific risks

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