Multiple Choice
Ahmet decided to increase the number of stocks in his portfolio. In doing so, Ahmet reduced
A) both the firm-specific risk, but not the market risk of his portfolio.
B) the firm-specific risk, but not the market risk of his portfolio.
C) the market risk, but not the firm-specific risk of his portfolio.
D) neither the market risk nor the firm-specific risk of his portfolio.
Correct Answer:
Verified
Correct Answer:
Verified
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