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Which of the following statements is TRUE? A. Spreading a portfolio across 30 different assets will eliminate systematic and firm-specific risk. B. The standard deviation
Which of the following statements is TRUE?
A. | Spreading a portfolio across 30 different assets will eliminate systematic and firm-specific risk. | |
B. | The standard deviation of a portfolio declines to zero as the number of assets in the portfolio is increased.
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C. | In general, the higher the expected return, the lower the risk.
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D. | An increase in the risk of an investment will result in a decreased risk premium.
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E. | The expected return on a risky asset is not a function of unsystematic risk. |
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