Identify the correct statement about the portfolio diversification:

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
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Q24
Identify the correct statement about the
portfolio diversification:
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
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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