Diversification can effectively reduce risk.Once a portfolio is diversified the type of risk remaining is:
A)total standard deviations.
B)risk related to the market portfolio.
C)riskless security risk.
D)individual security risk.
E)None of the above.

Question

Quizplus · Accepted Answer

Diversification reduces unsystematic risk, leaving only systematic risk, which is related to the market portfolio.

Diversification Can Effectively Reduce Risk