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  • Exam Code: C1000-105
  • Exam Name: IBM Cloud Associate SRE V1

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Which statement about portfolio diversification is correct?
A. Proper diversification reduces the portfolio's expected return because it can reduce or eliminate a portfolio's systematic risk.
B. The risk-reducing benefits of diversification do not occur meaningfully until at least 30 individual securities are included in the portfolio.
C. As more securities are added to a portfolio, total risk typically would be expected to fall at a decreasing rate.
Answer: C


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