Explain the graph below. Talk about market risk, firm-specific risk, diversification and number of stocks in a portfolio Does that mean you need to buy at least 20 stocks? What are the possible scenario that someone is not diversified at all with more than 20 stocks in his/her portfolio? 

 

Answer rating: 100% (QA)

The graph you provided likely shows the relationship between the number of stocks in a portfolio and the level of risk measured as standard deviation ... View the full answer