Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio?

The expected return of your portfolio is likely to decline.

The diversifiable risk of your portfolio will likely decline, but the market risk should not change.

The diversifiable risk will remain the same, but the market risk will likely decline.

Both the diversifiable risk and the market risk of your portfolio are likely to decline.

The total risk of your portfolio should decline, and as a result, the expected rate of return on the portfolio should also decline.