If an investor buys enough stocks, he or she can, through diversification, eliminate all of the market risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all diversifiable risk.

a. True

b. False

Respuesta :

Answer:

b. False

Explanation:

Only the systematic risk or market risk is not diversifiable and diversifiable risk can be eliminated by including more securities while market risk is non diversifiable.