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Which of the following statements are true (mark all that apply)? Diversification over a large number of assets completely eliminates all risk. Diversification works only
Which of the following statements are true (mark all that apply)?
Diversification over a large number of assets completely eliminates all risk.
Diversification works only when asset returns are uncorrelated.
A stock with high standard deviation may contribute less to portfolio risk than a stock with lower standard deviation.
Diversification reduces the expected return on the portfolio because it decreases risk.
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