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Author Question: Your broker tells you that it is important to diversify because doing so will increase your expected ... (Read 69 times)

lidoalex

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Question 1

Through diversification it is possible to eliminate all of the company-specific risk inherent in owning stocks. However, as a general rule it will not be possible to eliminate systematic (market) risk.
◦ true
◦ false

Question 2

Your broker tells you that it is important to diversify because doing so will increase your expected returns, even if you diversify by randomly selecting stocks (naive diversification).
◦ true
◦ false


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Marked as best answer by lidoalex on Apr 25, 2021

xMRAZ

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lidoalex

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


parker125

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Reply 3 on: Yesterday
Excellent

 

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