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In general, which of the following will tend to occur as you

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In general, which of the following will tend to occur as you add randomly selected stocks to your portfolio, which currently consists of just 3 stocks?
The expected return of your portfolio is likely to decline.
The diversifiable risk of your portfolio will likely decline, but the market risk will probably remain the same.
Both the diversifiable risk and the market risk of your portfolio are likely to decline.
The market risk and expected return of the portfolio are likely to decline.
The diversifiable risk will remain the same, but the market risk will likely decline.
Submitted: 7 years ago.
Category: Homework
Expert:  SteveS replied 7 years ago.
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