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As the Number of Stocks in a Person's Portfolio Increases

Question 28

Multiple Choice

As the number of stocks in a person's portfolio increases,


A) the risk of the portfolio increases,as indicated by the increasing value of the standard deviation of the portfolio.
B) the risk of the portfolio increases,as indicated by the decreasing value of the standard deviation of the portfolio.
C) the risk of the portfolio decreases,as indicated by the increasing value of the standard deviation of the portfolio.
D) the risk of the portfolio decreases,as indicated by the decreasing value of the standard deviation of the portfolio.

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