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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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