Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Q24
![Identify the correct statement about the
portfolio diversification:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8628036-e040-4719-b568-17bda7cc2a7b%2Fc218f683-41b3-497b-a2fd-fdb5ded50362%2F51csggr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Identify the correct statement about the
portfolio diversification:
![All of these statements are correct
Portfolio diversification reduces unsystematic risk of equity shares
As the size of the portfolio increases, the total risk also increases
Portfolio diversification reduces the systematic risk to zero](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8628036-e040-4719-b568-17bda7cc2a7b%2Fc218f683-41b3-497b-a2fd-fdb5ded50362%2Fyf432d_processed.jpeg&w=3840&q=75)
Transcribed Image Text:All of these statements are correct
Portfolio diversification reduces unsystematic risk of equity shares
As the size of the portfolio increases, the total risk also increases
Portfolio diversification reduces the systematic risk to zero
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