Which of the following is correct concerning diversification?
A) It only reduces firm-specific risk,but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
B) It only reduces firm-specific risk;much of the reduction comes from increasing the number of stocks in a portfolio from 1 to 30.
C) It only reduces market risk,but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
D) None of the above is correct.
Correct Answer:
Verified
Q14: By purchasing shares in a mutual fund
Q15: If you believe that stock prices follow
Q16: Fundamental analysis shows that stock in Garske
Q17: Fundamental analysis is
A)the study of the relation
Q18: Which of the following is correct?
A)Risk-averse people
Q20: Fundamental analysis shows that stock in Cedar
Q21: According to the efficient markets hypothesis,which of
Q22: The efficient markets hypothesis says that
A)only individual
Q23: Which of the following terms is used
Q24: Which of the following is correct?
A)Managed funds
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