Which of the following statements about investing in the


Which of the following statements about investing in the capital market is most accurate?

i. Holding multi-asset portfolios is beneficial to investors because portfolios have different risk-return characteristics than the capital assets in the portfolios.

ii. Increasing the number of capital assets in a portfolio always reduces the portfolio’s risk.

iii. Investors willing to take risks to get higher returns can best accomplish this goal by holding portfolios with small numbers of carefully chosen capital assets.

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Financial Management: Which of the following statements about investing in the
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