If We Are Able to Eliminate All of the Unsystematic

question 57

Multiple Choice

If we are able to eliminate all of the unsystematic risk in a portfolio then,what is the result?

• A) a risk-free portfolio
• B) a portfolio that contains only systematic risk
• C) a portfolio that has an expected return of zero
• D) such a portfolio cannot be constructed since there will always be unsystematic risk in any portfolio

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