Multiple Choice
You own Stock A with a standard deviation of 48% and Stock B with a standard deviation of 35%. As you add more Stock A to your portfolio, the standard deviation of your portfolio will:
A) always increase.
B) always decrease.
C) remain the same.
D) It depends on the initial weights and the correlation.
E) Insufficient information.
Correct Answer:
Verified
Correct Answer:
Verified
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