If you build a large enough portfolio, you can diversify away all the risks of a portfolio.

Name: If you build a large enough portfolio, you can diversify away all the risks of a portfolio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Diversification can reduce the specific risk of individual assets, but it cannot eliminate systematic risks such as market or economic risks that impact entire portfolios. Therefore, even with a large portfolio, some level of risk will always be present.

If You Build a Large Enough Portfolio, You Can Diversify