Question: Q2. (25 marks) Explain the graph given below in context of our lecture discussion. Average annual standard deviation (%) 49.2 Diversifiable risk 23.9 19.2 Nondiversifiable

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

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