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Which Statement Is FALSE Regarding Risk and Return

Question 76

Multiple Choice

Which statement is FALSE regarding risk and return?


A) For broad asset classes,the relationship between risk and return is nearly linear.
B) Adding multiple stocks to a portfolio can reduce non-systematic risk.
C) There is a nearly linear relationship between risk and return for individual stocks.
D) Because investors can easily eliminate risk through diversification,investors should only be rewarded for non-diversifiable risk.

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