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10. Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average
10. Which of the following is most likely to occur as you add randomly selected stocks to your portfolio, which currently consists of 3 average stocks?
1. The systematic risk of your portfolio will likely decline, but the expected market risk should not change.
2. The diversifiable risk of your portfolio will likely decline, but the expected systematic risk should not change.
3. The expected return of your portfolio is likely to decline.
4. Both the diversifiable risk and the market risk of your are likely to decline.
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