The following graph plots portfolio risk against the size of the portfolio as measured by the number of stocks in the portfolio. (Hint: Hover the mouse over the graph to read the coordinates.) Based on the data presented in the previous graph, which of the following statements are true? Check aN that appiy. A portfolio of 80 stocks has a diversifiable risk of 42%. Adding risky stocks increases the risk of the portfolio. As the portfolio size increases, its total risk declines. As the portfolio size increases, its market risk remains constant. Diversifiable risk lies above =30%. The benchmark for a well-diversified stock portfolio is the market portfolio, which is a portfolio containing all stocks. The relevant risk of an individual stock is measured by its beta coefficient, which is defined under the Capital Asset Pricing Model (CAPM) as the amount of risk that the stock contributes to the well-diversified portfolio. Based on your understanding of the CAPM and beta, answer the following question: Which of the following statements about beta is true? A stock with a high standard deviation will tend to have a high beta. A stock with a low standard deviation will tend to have a high beta. A stock with a high standard deviation will tend to have a low beta