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Increasing the number of stocks in a portfolio from 10 to 50 would most likely A. Increase the variability of returns of the portfolio B.

Increasing the number of stocks in a portfolio from 10 to 50 would most likely A. Increase the variability of returns of the portfolio B. Decrease the variability of returns on the portfolio C. Increase the unsystematic risk of the portfolio D. Decrease the systematic risk of the portfolio QUESTION 11 A stock with a positive alpha is one that you should buy because it is currently underpriced. True False QUESTION 12 Diversification can reduce the level of systematic risk. True False

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