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Increasing the number of stocks in a portfolio would likely __________________. decrease the unsystematic risk of the portfolio decrease the systematic risk of the portfolio

Increasing the number of stocks in a portfolio would likely __________________.

  1. decrease the unsystematic risk of the portfolio
  2. decrease the systematic risk of the portfolio
  3. increase the undiversifiable risk of the portfolio
  4. increase the diversifiable risk of the portfolio

Group of answer choices

I and IV only

II only

I only

II and III only

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