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Which of the Following Is Not Correct

Question 87

Multiple Choice

Which of the following is not correct?


A) A risk averse person might be willing to hold stocks.
B) Other things the same,a portfolio with the stocks of a large number of companies has less risk.
C) Other things the same,the larger a portion of savings a person invests in stocks,the greater his expected return.
D) Diversification can eliminate market risk but not firm-specific risk.

Correct Answer:

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