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Which of the following statements best describes what would be expected to happen as you randomly select stocks and add them to a portfolio? Group
Which of the following statements best describes what would be expected to happen as you randomly select stocks and add them to a portfolio?
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Adding more such stocks will always reduce the portfolios beta
Adding more such stocks will have no effect on the portfolios risk
Adding more such stocks will reduce the portfolios unsystematic, or diversifiable, risk
Adding more such stocks will reduce the portfolios market risk
Adding more such stocks will certainly increase the portfolios expected return
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