You own only two stocks in your portfolio but want to add more When you add a third stock, the total risk of your portfolio declines When you add a tenth stock to the portfolio, the total risk declines Adding which stock, the third or the tenth, likely reduced the total risk more Why ...

A portfolio of two stocks most likely still has a lot of firmspecif ...

You own only two stocks in your portfolio but want to add more. When you add a

Question:

You own only two in your but want to add more. When you add a third stock, the total risk of your declines. When you add a tenth stock to the the total risk declines. Adding which stock, the third or the tenth, likely reduced the total risk more? Why?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...