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Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio? A). Adding more stocks
Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio?
A). Adding more stocks to your portfolio reduces the portfolio's company-specific risk.
B). Adding more stocks to your portfolio reduces the beta of your portfolio.
C). Adding more stocks to your portfolio increases the portfolio's expected return.
D). Statements a and c are correct.
E). All of the statements above are correct.
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