(Solved): The following graph plots the relationship between risk, calculated as the standard deviation of th ...

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 of False: Increasing the number of stocks in a portfolio reduces market risk: True False Consider two stock portfobos. Portfotio B censists of four different stocks from firms in different industries. Portfolio A consiets of 20 different stocks; also frem fims in different industries. The retum on Aortfolio $$a$$ is i kely to be volatile than that of Portfollo $$\mathrm{A}$$ Suppose a stock analyst recommends buying stock in the following companie Suppose a stock analyst recommends buying stock in the following companies: Each of the following portfolios contains stock picks from four of the listed companies. Which of the portfolios is the most diversified? Horizon, Jockson a Jackson, Generic Motors, Ctron Jackeon i Jackson, Waireds, Edides, Ahena Edides, Ahena, Ctron, Zahoe Jackson 5 lackson, Niter, Alatef, Waliedt