Systematic risk is reduced to zero as the number of different stocks in a portfolio increases.

Name: Systematic risk is reduced to zero as the number of different stocks in a portfolio increases.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, cannot be diversifiable and is inherent to the entire market. As such, it cannot be fully eliminated through portfolio diversification. However, portfolio diversification can help to reduce the impact of systematic risk on a portfolio.

Systematic Risk Is Reduced to Zero as the Number of Different