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Which of the following is generally true with respect to portfolio diversification? a. A portfolio of 10 stocks is likely to have a smaller standard

Which of the following is generally true with respect to portfolio diversification?

a.

A portfolio of 10 stocks is likely to have a smaller standard deviation than a portfolio of 20 stocks.

b.

A portfolios expected return increases as more stocks are added.

c.

A portfolios standard deviation decreases as more stocks are added.

d.

What matters is a portfolios expected return, not its standard deviation.

e.

None of the above.

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