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Which of the following is not a step in the portfolio management process?
A)
Developing an IPS.
B)
Feedback.
C)
Execution.



Developing an IPS is a subset of the planning process.

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Diversification can reduce:
A)
systematic risk.
B)
macroeconomic risks.
C)
unsystematic risk.



Systematic risk reflects factors that have a general effect on the security markets as a whole, and cannot be diversified away. Macroeconomic risk comes in many forms, and it is usually considered systematic risk. Unsystematic risk can be reduced through diversification.

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