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Which of the following statements is false? a.Adding additional securities to a portfolio only reduces market risk. b.The risk-return relationship relates only to market risk.

Which of the following statements is false? a.Adding additional securities to a portfolio only reduces market risk. b.The risk-return relationship relates only to market risk. c.Reducing market risk usually implies sacrificing expected return. d.The appropriate measure of risk should only consider the incremental risk a security adds to a well-diversified portfolio. e.Investors are usually not fully compensated for bearing the total risk associated with a security.

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