Research suggests that a portfolio of 20 or 30 different stocks has eliminated most of the portfolios systematic risk.

Name: Research suggests that a portfolio of 20 or 30 different stocks has eliminated most of the portfolios systematic risk.
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Systematic risk, also known as market risk, cannot be eliminated through diversification. A portfolio of 20 or 30 stocks can reduce unsystematic risk, which is specific to individual stocks, but systematic risk affects the entire market and remains.

Research Suggests That a Portfolio of 20 or 30 Different