The Shares Traded Publicly in an Efficient Market Are ________

Multiple Choice

The shares traded publicly in an efficient market are ________.

A) generally positively affected by diversification, because of the reduction in risk
B) generally negatively affected by diversification, because of the increase in risk
C) generally not affected by diversification, unless greater returns are expected
D) generally negatively affected by diversification, because of the increase in the required rate of return