Question

Which of the following statement is correct Group of answer choices The risk of a portfolio will be a weighted average of the risk of the individual stocks The total risk can then be broken down into market risk and systematic risk The demand for stocks by investors should depend on the stocks' individual level of risk The reduction in risk that is accomplished by combining stocks in a portfolio is called diversification

Answer 1

The correct statement is: the reduction in risk that is accomplished by combining stocks in a portfolio is called diversification.

What is diversification?

Diversification are strategies devised by organizations by investing or venturing to different business with the aim of reducing or eliminating exposures.

Hence, the correct statement is: the reduction in risk that is accomplished by combining stocks in a portfolio is called diversification.

Learn more about diversification here: https://brainly.com/question/18647091

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