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NEW QUESTION: 2
Which statement about portfolio diversification is correct?
A. Because diversification reduces a portfolio's total risk, it necessarily reduces the portfolio's expected return.
B. Typically, as more securities are added to a portfolio, total risk would be expected to decrease (at a decreasing rate).
C. The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual securities have been purchased.
Answer: B
Explanation:
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D. the Operating Unit level
E. the Item Master level
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