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Which of the following statements about diversification is false?
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5. Which of the following statements about diversification is false? (a) Diversification can by accomplished by adding a stock that is perfectly positively

correlated with the investor’s existing stock portfolio (b) As the number of stocks in the portfolio increases, the diversifiable risk of the portfolio reduces. (c) When stock returns do not move perfectly with each other, the variations in the returns on one stock may be countered by variations in other stocks’ returns. (d) A perfectly diversified portfolio will still have risk equal to systematic risk.
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