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Portfolio Diversification

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Questions and Answers

By combining assets, it is possible to:

Increase risk and return simultaneously

Increase risk and decrease return simultaneously

Decrease risk and return simultaneously

Decrease risk and increase return simultaneously (correct)

What is the benefit of combining assets?

Increase risk and return simultaneously

Decrease risk and return simultaneously (correct)

Increase risk and decrease return simultaneously

Decrease risk and increase return simultaneously

What happens to risk and return when assets are combined?

Risk increases and return decreases (correct)

They both increase

They both decrease

Risk decreases and return increases

Portfolio Diversification

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Podcast

Questions and Answers

By combining assets, it is possible to:

What is the benefit of combining assets?

What happens to risk and return when assets are combined?

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