Demonstrate how diversification helps in reducing the risk of the above portfolio. Please provide a detailed explanation using relevant numbers.

QUESTIONS 4 points This is a continuation of the previous problem. There is a $30,000 portfolio that consists of Stocks X Y and Z? You invest equally in the three stocks. State of Probability of Economy the state Returns if state occurs Boom 0.05 Normal 0.85 Rust m Stock X StockY 11% -9% 8% 79 -58 14 Stock 7% 39 94 Demonstrate how diversification helps in reducing the risk of the above portfolio. Please provide detailed explanation using relevant numbers. Write your answer in the spa provided