Question: please help!! from left to right the other three dots plotted are (16,20) (60,14) & (120,11) 9. Effects of portfolio size on portfolio risk The

9. Effects of portfolio size on portfolio risk The following graph plots portfolio risk against the size of the portfolio as measured by the number of stocks in the portfolio. (Hint: Hover the mouse over the graph to read the coordinates.) ? 150, 10 0 15 30 45 00 75 00 105 120 135 150 NUMBER OF STOCK IN THE PORTFOLIO 84 20 G PORTFOLIO RISK 10 5 Based on the data presented in the previous graph, which of the following statements are true? Check all that apply. 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. Diversifiable risk lies below a = 10%. The risk of a portfolio consisting of large-company stocks approaches a limit of 10%. A portfolio of 60 stocks has a total risk of 14%. 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? OA stock with a high correlation with the market is risky. OA stock with a low correlation with the market is risky. A stock with low stand-alone risk will tend to destabilize the portfolio
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