How does portfolio diversification impact the types of risks involved?

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Lower overall market riskCompletely remove every type of riskRaise the volatility of the portfolio’s returnsDecrease risk specific to individual assetsNone of the above

Explanation

Diversifying a portfolio helps to minimize idiosyncratic risk, which is the risk unique to individual investments, but it cannot eliminate all types of risk such as market risk.

How does portfolio diversification impact the types … — Risks And Diversification & Efficient Market Hypothesis | PakQuizHub