Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: What is the expected return on Andre's stock portfolio? 8.06% 10.75% 16.13% 14.51% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.40 (rho = 0.40) with each of the other stocks. The market's average standard deviation is approximately 20%, and the weighted average of the risk of the individual securities in the partially diversified four-stock portfolio is 43%. If 40 additional, randomly selected stocks with a correlation coefficient of 0.30 with the other stocks in the portfolio were added to the portfolio, what effect would this have on the portfolio's standard deviation (sigma_p)? It would gradually settle at about 35%. It would decrease gradually, settling at about 0%. It would gradually settle at approximately 20%. It would stay constant at 43%