Question: > Q2. (25 marks) Explain the graph given below in context of our lecture discussion. Average annual standard deviation (%) 49.2 23.9 Diversifiable risk

> Q2. (25 marks) Explain the graph given below in context of our lecture discussion. Average annual standard deviation (%) 49.2 23.9 Diversifiable risk 19.2 Nondiversifiable risk > Number of stocks 10 20 30 40 1,000 in portfolio

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