As you increase the number of stocks in a portfolio, the systematic risk is likely to :

CS Executive · Financial and Strategic Management · PYQS · December 2019
As you increase the number of stocks in a portfolio, the systematic risk is likely to :
(A) remain constant
(B) increase at a decreasing rate
(C) decrease at a decreasing rate
(D) decrease at an increasing rate

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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