Question: How does the standard deviation of returns in a portfolio change as the number of stocks within the portfolio increase? Explain the role of diversification
How does the standard deviation of returns in a portfolio change as the number of stocks within the portfolio increase? Explain the role of diversification in reducing portfolio risk, and whether there is a limit to the benefit of adding more stocks to the portfolio reducing portfolio risk, and whether there is a limit to the more stocks to the portfolio
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