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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 standard deviation?

it decreases, then becomes constant

it increases

it first decreases, then it increases

it stays the same

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