Question: The fallowing graph plots the relationship between risk, calculated as the standard deviation of the return of a stock partiolio, and the number af different

The fallowing graph plots the relationship between risk, calculated as the

The fallowing graph plots the relationship between risk, calculated as the standard deviation of the return of a stock partiolio, and the number af different stocks the portfolio contains for some imsginary stodk market. True ar False: Increasing the number of stodes in a portfolio roduces market riskc. True False Consider two stock portfalioa. Portfolio Y consists af 20 different stods from firma in different industries. Portfalio X consists of faur different stocks, also fram finms in different industries. The retum an Partfalio Y is likely to be volatile than that of Partfolio x. Suppose a stadk anslyst recommends buying stodk in the fallowing companies: Each of the fallowing portfolios containg stock picks fram faur of the listed companies. Which of the portfoliog is the least diversified? Jackson a Jackson, Wbireds, Edides, Atheng Horizon, Athens, Generic Mators, Qtron Jsckson s Jackson, Fizser, Bszer, Wolreds Edides, Athena, Otron, Zahoo

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