Multiple Choice
Edgar decided to increase the number of stocks in his portfolio.His actions reduced
A) both the firm-specific risk and 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 aggregate nor the firm-specific risk of his portfolio.
Correct Answer:
Verified
Correct Answer:
Verified
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