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5. If more randomly selected stocks in the U.S. had been included in a portfolio, which of the following is the most accurate statement of
5. If more randomly selected stocks in the U.S. had been included in a portfolio, which of the following is the most accurate statement of what would have happened to the standard deviation of the Portfolio ? Why? Explain and be concise.
(1)standard deviation of the Portfolio would have remained constant.
(2) standard deviation of the Portfolio would have declined to zero if enough stocks had been included.
(3) standard deviation of the Portfolio would have been in the vicinity of 20 percent.
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