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Which one of the following statements is true? The beta of a portfolio may be lower than the lowest beta of any individual security held

Which one of the following statements is true?

The beta of a portfolio may be lower than the lowest beta of any individual security held within the portfolio.

How a security affects the risk of a portfolio is less important than the actual risk of the security itself.

Investing has two dimensions: risk and return.

Risk and return are inversely related.

Investors are compensated only for diversifiable risk.

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