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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 () Diversifiable risk 23.00 19.2 Nondiversifiable 10 Number of stocks In portfolio 20 30 40 1.000

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