Which of the following is not correct?
A) A risk averse person might be willing to hold stocks.
B) Other things the same, a portfolio with the stocks of a large number of companies has less risk.
C) Other things the same, the larger a portion of savings a person invests in stocks, the greater their expected return.
D) Diversification can eliminate market risk but not firm-specific risk.
Correct Answer:
Verified
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A)The
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A)only market risk.
B)only firm-specific risk.
C)neither market
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