Some diversification benefits can be achieved by combining


1. Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is ________

1

Less than 1

Between 0 and 1

Less than or equal to 0

2. Increasing the number of stocks in a portfolio from 10 to 50 would most likely ______

Increase the systematic risk of the portfolio

Increase the unsystematic risk of the portfolio

Decrease the systematic risk of the portfolio

Decrease the variability of returns on the portfolio

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Financial Management: Some diversification benefits can be achieved by combining
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