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The chart below shows the relation between number of stocks in portfolio and average annual standard deviation. Please explain what we can learn from this

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The chart below shows the relation between number of stocks in portfolio and average annual standard deviation. Please explain what we can learn from this chart. Average annual standard deviation (%) 49.2 Diversifiable risk 23.9 19.2 Nondiversifiable risk Number of stocks In portfolio 10 20 30 40 1.000

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