Multiple Choice
Which of the following statements is false?
A) diversification cannot eliminate risk that is inherent in the macroeconomy or market risk.
B) the expected rate of return on a portfolio does not depend on the correlation between the return on each stock.
C) although gold is a risky investment by itself, including gold in a stock portfolio may reduce total risk of the portfolio.
D) all of the above statements are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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