Consider the following case:

Rajiv 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:

Stock	Percentage of Portfolio	Expected Return	Standard Deviation
Artemis Inc.	20%	6.00%	23.00%
Babish & Co.	30%	14.00%	27.00%
Cornell Industries	35%	12.00%	30.00%
Danforth Motors	15%	5.00%	32.00%

The expected return on Rajivs stock portfolio is a) 10.35% b) 7.7625% c) 15.52% d) 13.9725%

Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 ( = 0.4) with each of the other stocks. If the weighted average of the risk (standard deviation) of the individual securities in the partially diversified portfolio of four stocks is 28%, the portfolios standard deviation (p) most likely is 28% a) less than b) equal to c) more than