Suppose You Hold a Portfolio Consisting of a Single Stock

question 26

Multiple Choice

Suppose you hold a portfolio consisting of a single stock. About how many more stocks would you need to add to your portfolio in order to reduce its average annual variability to about the level of average annual variability you would experience if you held a portfolio consisting of every stock listed on the New York Stock Exchange?

• A)1
• B)20
• C)1000
• D)10,000

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