Which of the following best sums up what you might

anticipate if you choose stocks at random and add

them to your portfolio?

Adding more such stocks will increase the portfolio's

expected rate of return.

Adding more such stocks will reduce the portfolio's

diversifiable risk.

Adding more such stocks will have no effect on the

portfolio's risk.

Adding more such stocks will reduce the portfolio's

market risk but not its diversifiable risk.

Adding more such stocks will reduce the portfolio's beta

coefficient and thus its market risk.