Based on the data presented in the previous graph, which of the following statements are true? Check all that apply.

Diversifiable risk lies below $\backslash$sigma $=10\%.$

A portfolio of $60$ stocks has a total risk of $14\%.$

All stocks are equally risky, and adding them to a portfolio will increase the portfolio$$s risk.

As the portfolio size increases, its market risk remains constant.

The risk of a portfolio consisting of large$-$company stocks approaches a limit of $10\%.$

The benchmark for a well$-$diversified stock portfolio is the market portfolio, which is a portfolio containing all stocks. The relevant risk of an individual stock is measured by its beta coefficient, which is defined under the Capital Asset Pricing Model $($CAPM$)$ as the amount of risk that the stock contributes to the well$-$diversified portfolio. Based on your understanding of the CAPM and beta, answer the following question:

Which of the following statements about stock$$s correlation with the market is true?

A stock with a high correlation with the market is risky.

A stock with low stand$-$alone risk will tend to destabilize the portfolio.

A stock with a low correlation with the market is risky.Based on the data presented in the previous graph, which of the following statements are true? Check all that apply.

Diversifiable risk lies below $\backslash$sigma $=10\%.$

A portfolio of $60$ stocks has a total risk of $14\%.$

All stocks are equally risky, and adding them to a portfolio will increase the portfolio$$s risk.

As the portfolio size increases, its market risk remains constant.

The risk of a portfolio consisting of large$-$company stocks approaches a limit of $10\%.$

The benchmark for a well$-$diversified stock portfolio is the market portfolio, which is a portfolio containing all stocks. The relevant risk of an individual stock is measured by its beta coefficient, which is defined under the Capital Asset Pricing Model $($CAPM$)$ as the amount of risk that the stock contributes to the well$-$diversified portfolio. Based on your understanding of the CAPM and beta, answer the following question:

Which of the following statements about stock$$s correlation with the market is true?

A stock with a high correlation with the market is risky.

A stock with low stand$-$alone risk will tend to destabilize the portfolio.

A stock with a low correlation with the market is risky.