More than one answer may be correct. To earn full credit, you must select all of the correct answers and none of the incorrect answers.

Chart 4 in the Lecture 5 workbook displays medians for total risk, systematic risk, and unsystematic risk as the size of the portfolio of stocks increases, where size refers to number of stocks in the portfolio rather than dollar value of the portfolio.

Which of the following statements based on Chart 4 are correct? (All statements concern equal-weighted portfolios of stocks.)

Group of answer choices

-Median total risk decreases as size increases and almost levels out at about 100 stocks.

-Unsystematic risk is approximately zero, on average, for portfolios with 100 or more stocks.

-Median total risk converges quickly to median systematic risk as N (number of stocks) increases and the two are approximately the same for portfolios with 100 stocks or more.

-The proportion of median total risk that is due to unsystematic risk increases as the number of stocks in the portfolio increases.