True or false: It is possible for the unsystematic risk of a portfolio to be reduced almost to zero.True false question.TrueFalse

Diversifying an investment portfolio allows the reduction of unsystematic risk to a minimum.This Statment Is True OR FLSE

Answer True/False to the following question.A risk is a statement about a probability.

The higher the risk means the potential for a greater return. True False

Which of the following statement is false?Group of answer choicesDiversification reduces the risk of a portfolio because the prices of different securities do not move exactly together.A risk premium can be measured as the difference between a security's return and the Treasury bill return.The beta of a well-diversified portfolio is equal to the value weighted average beta of the securities included in the portfolio.The portfolio risk that cannot be eliminated by diversification is called unique risk.

As more securities are added to a portfolio, what will happen to the portfolio's total unsystematic risk?Multiple select question.It is likely to increase.It may eventually be almost totally eliminated.It is likely to decrease.It will not change.