Non­diversifiable risk-which is measured by beta

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TRUE/FALSE : PLEASE GIVE REASON WHY

1. Non­diversifiable risk, which is measured by beta, can be lowered by adding a greater variety of stocks to a portfolio

2. Diversifiable risk can be lowered by adding a greater variety of stocks to a portfolio.

3. A stock's beta is more relevant as a measure of risk to an investor with a well­diversified portfolio than to an investor who holds only one stock.

Reference no: EM131445368

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