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Which of the following statements is true? O The primary purpose of portfolio diversification is to lower both returns and risks. An expected news event

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Which of the following statements is true? O The primary purpose of portfolio diversification is to lower both returns and risks. An expected news event should have a large effect on asset prices in an efficient market. O All of the statements in other choices for this question are false. O The expected rate of return on a portfolio does not depend on the correlation between the return on each stock. Next

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