Multiple Choice
As randomly selected securities are combined to create a portfolio, the ___________ risk of the portfolio decreases until 10 to 20 securities are included. The portion of the risk eliminated is___________risk, while that remaining is ___________risk.
A) total; diversifiable; nondiversifiable
B) relevant; irrelevant; total
C) diversifiable; nondiversifiable; total
D) total; nondiversifiable; diversifiable
Correct Answer:
Verified
Correct Answer:
Verified
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