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Which of the following is/are true regarding risk and return? I. You cannot expect to be compensated with higher return for risk you could otherwise

Which of the following is/are true regarding risk and return?

I. You cannot expect to be compensated with higher return for risk you could otherwise diversify away.

II. Diversification is necessary to reduce unsystematic risk

III. Total Risk can be found by adding an assets Beta to its Standard Deviation

I and II only

II and III only

All are true

All are false

II only

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