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An individual stocks diversifiable risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock
An individual stocks diversifiable risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
True
False
When adding a randomly chosen new stock to an existing portfolio, the higher the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolios risk.
True
False
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