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

of different stocks the portfolio contains for some imaginary stock market. True

The following graph plots the relationship between risk, calculated as the standard deviation of the return of a stock portfolio, and the number of different stocks the portfolio contains for some imaginary stock market. True or false: increasing the number of stocks in a portfolio reduces market risk. True False Consider two stock portfolios. Portfolio B consists of 20 different stocks from firms in different industries. Portfolio A consists of 10 different stocks, also from firms in ditferent industries. The return on Portfolio B is likely to be volatile than that of Portfolio A. Suppose a stock andyst recommends buying stock in the following companies: Each of the following portfolios contains stock picks from four of the listed companles. Which of the portfolios is the least diversified? Horizon, Athens, Generic Motors, Citron Jackson \& Jackson, Fizzer, Bazer, Walreds Jackson \& Jackson, Walreds, Edides, Athena Edides, Athena, Citron, Zahoo

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