Answered: Diversification in a portfolio helps…

Diversification in a portfolio helps to:A. Increase expected returnB. Increase unsystematic riskC. Reduce risk without affecting returnsD. Eliminate all types of risk

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 3QE

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Question

Diversification in a portfolio helps to:
A. Increase expected return
B. Increase unsystematic risk
C. Reduce risk without affecting returns
D. Eliminate all types of risk

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