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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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