Which of the following is/are true?
A) Most of the unsystematic risk is removed by the time a portfolio contains 30 stocks.
B) Two points on the Characteristic Line are the T-bill and the market portfolio.
C) The greater the total risk of an asset, the greater the expected return.
D) All securities have a beta between 0 and 1.

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as diversifiable risk, can be significantly reduced by holding a diversified portfolio of about 30 stocks, as individual stock risks tend to offset each other.

Which of the Following Is/are True