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ou only have four stocks in your portfolio. What will happen to your portfolio if you add some randomly selected stocks to it? Question 4
ou only have four stocks in your portfolio. What will happen to your portfolio if you add some randomly selected stocks to it? Question 4 options:
a) The diversifiable risk will remain the same but the market risk will rise.
b) The diversifiable risk to your portfolio will probably decline while the expected market risk will not change.
c) The total portfolio risk should decline along with the expected rate of return, but the market risk will remain unchanged.
d) The diversifiable risk and the market risk will both decline.
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