________ Will Not Systematically Affect the Portfolio Return, but It

question 15

Multiple Choice

________ will not systematically affect the portfolio return, but it will reduce the variability (standard deviation) of return with this variability reduced when there is ________ among security returns.

• A) Diversification; more variance
• B) Differentiation; less correlation
• C) Diversification; less correlation
• D) Diversification; less variance