Portfolio S is a three-stock portfolio. Portfolio L is a 100-stock portfolio. Explain why Portfolio L has a smaller return variance, that is, why L2< S2. (Potentially helpful information: in the current environment an average stock has an expected (annual) return of around .08 (8%), a return standard deviation of .40 (40%), and a return variance of .16. Depending on its construction, a portfolio with a large number of stocks might have a return standard deviation of .20 and a return variance of .04).