Multiple Choice
Which of the following statements is true?
A) A well-diversified portfolio has negligible systematic risk.
B) A well-diversified portfolio has negligible unsystematic risk.
C) An individual security has negligible systematic risk.
D) An individual security has negligible unsystematic risk.
E) Both A well-diversified portfolio has negligible systematic risk; and An individual security has negligible unsystematic risk.
Correct Answer:
Verified
Correct Answer:
Verified
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