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26-03-2024
Business

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Which of the following statements is false regarding the risk of a portfolio comprised of two risky securities A & B?
a) It is possible for the risk of a portfolio comprising A and B to be lower than the risk of either A or B individually.
b) Diversification can reduce the risk of the portfolio.
c) The risk of the portfolio is solely determined by the risk of the individual securities.
d) Correlation between the two securities affects the risk of the portfolio.

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