Conrider the following casei Andrew is an amateur investor who hodds in smoll portfolio consiating of anly four sbocks. The stock haldings in his portfolla are shewn in the following tabie: The expected retum on Andrew's stock partfolie is Suppose each stock in the preceding portfolio has a correlation coefficlent q 0.4(=0.4) with each of the other stocks. The market's average standard deviation is around 20%, and the weighted average of the risk of the individuat securities in the partially diversified portfolie of four stocks is 333h If 40 additional, randomly seiected stocks with a correiation coefhcent of 0.3 with the other stocks in the portfolio wnre added to the portfolio, what effect would this have on the portfolio's standard deviation (r)? It would decrease graduelly, settling at about 0%5. It would stay constant at 33\%. It would gradually settie at about 20%6. It would gradually settie at about 35%