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Market risk is relevant for stocks held in well-diversified portfolios, defined as the contribution of a security to the overall riskiness of the portfolio. It

Market risk is relevant for stocks held in well-diversified portfolios, defined as the contribution of a security to the overall riskiness of the portfolio. It is measured by a stocks beta.

True.

False.

As more stocks are added into a portfolio, each new stock has a smaller risk-reducing impact on the portfolio.

		True.
		False.

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