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Which of the following statements is not correct? 1) Not all risk (such as systematic risk) can be diversified 2) As number of assets becomes

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Which of the following statements is not correct? 1) Not all risk (such as systematic risk) can be diversified 2) As number of assets becomes very large, portfolio standard deviation does not approach zero 3) Asset specific risk cannot be diversified 4) As the number of assets increases, portfolio variance becomes more dependent on the covariances (or correlations) and less dependent on individual assets' variances

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