QUESTION 20 3 points Save Answer Which statement about portfolio diversification

Question

QUESTION 20 3 points Save Answer Which statement about portfolio diversification is correct? O a Proper diversification can reduce or eliminate systematic risk. O b. The risk-reducing benefits of diversification do not occur meaningfully until at least 15-20 individual securities have been purchased. O c. Because diversification reduces a portfolio's total risk, it necessarily reduces the portfolio's expected return. O d. Typically, as more securities are added to a portfolio, total risk would be expected to fall at a decreasing rate.

Explanation / Answer

d is the answer

because beyond a point you will see lower impact on risk reduction if you continue to add more assets

the above is answer

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---