With diversification it is possible Select one: • that the risk of the portfolio will be lower than the risk of the least risky investment in the portfolio. • that the return of the portfolio will be higher than the return of the most profitable investmen in the portfolio. • the coefficient of variance of the protfolio will be higher than the coefficient of variance of the highest risk investment. All of the above is true.
Added by Yousef A.
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This is because diversification spreads the risk across different investments, reducing the impact of any one investment performing poorly. Secondly, the return of the portfolio could potentially be higher than the return of the most profitable investment in the Show more…
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