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20 August, 12:32

If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all diversifiable risk.

a. True

b. False

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Answers (1)
  1. 20 August, 12:36
    0
    b. False

    Explanation:

    Only the systematic risk or market risk is not diversifiable and diversifiable risk can be eliminated by including more securities while market risk is non diversifiable.
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