Question
A graph shows the standard deviation (risk) of a stock portfolio on the vertical axis, and the number of stocks in the portfolio on the
A graph shows the standard deviation (risk) of a stock portfolio on the vertical axis, and the number of stocks in the portfolio on the horizontal axis. As the number of stocks increases what happens to the market risk of the portfolio?
it decreases
it increases
it stays the same
it first decreases, then it increases
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
