Which of the following is not a correct statement about diversification? Most diversification benefits are realized with just 30 to 40 stocks. Diversification is the process of reducing the riskiness associated with individual assets by spreading an investment across numerous assets. Non-diversifiable risk is the only risk that matters to a diversified investor. There is no limit to the amount of risk that can be eliminated through diversification.
Which of the following is not a correct statement about diversification? Most diversification benefits are realized with just 30 to 40 stocks. Diversification is the process of reducing the riskiness associated with individual assets by spreading an investment across numerous assets. Non-diversifiable risk is the only risk that matters to a diversified investor. There is no limit to the amount of risk that can be eliminated through 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
Section: Chapter Questions
Problem 1PS
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Which of the following is not a correct statement about diversification?
Most diversification benefits are realized with just 30 to 40 stocks.
Diversification is the process of reducing the riskiness associated with individual assets by spreading an investment across numerous assets.
Non-diversifiable risk is the only risk that matters to a diversified investor.
There is no limit to the amount of risk that can be eliminated through diversification.
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