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omework: Homework Ch8 save re: 0 of 2 pts 12 of 18 (3 complete) HW Score: 17%, 6.8 of 40 pts -17 (similar to) Question

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omework: Homework Ch8 save re: 0 of 2 pts 12 of 18 (3 complete) HW Score: 17%, 6.8 of 40 pts -17 (similar to) Question Help tal, nondiversifiable, and diversifiable risk David Talbot randomly selected securities from all those listed on the New York Stock Exchange for his portfolio He began with a single security and Sded securities one by one until a total of 20 securities were held in the portfolio After each security was added, David calculated the portfolio Standard deviation, The calculated values are hown in the following table . Plot the data from the table on a graph that has the number of securities on the x-axis and the portfolio Standard deviation on the yaxis .. Divide the total portfolio risk in the graph into its nondiversifiable and diversifiable risk components, and label each of these on the graph c. Describe which of the two risk components is the relevant risk, and explain why is relevant. How much of this risk exists in David Talbor's portfolio? 20- OB , 25 15 16 16 14- 12 123 15 15 Nondiversifiable Risk . Diversifiable Risk Portfolk Portfolio Nondiversitable Risk Diversifiable Risk 15 Number of Securties in Porto Number of secures Portfolio . OD . 20 16 55 10 Po Die Rish Notarial Risk Hodiversitatile Case your answer and then cho Check Arrow 1

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