True or False: Increasing the number of stocks in a portfolio reduces firm-specific risk. True False Consider two stock portfolios. Portfolio A consists of 20 different stocks from firms in different industries. Portfolio B consists of four different stocks, also from firms in different industries. The return on Portfolio A is likely to be volatile than that of Portfolio B. Suppose a stock analyst recommends buying stock in the following companies: Company  Industry Toyonda Automotive Saalvo Automotive GMW Automotive Honsubishi Automotive Shexxon Oil and gas Mobron Oil and gas Airing Aircraft Boebus Aircraft Goohoo Technology Pherk Pharmaceutical Each of the following portfolios contains four of the stock picks. Which portfolio is the least diversified? Pherk, Airing, Goohoo, Shexxon Toyonda, Honsubishi, Boebus, Airing Toyonda, Saalvo, GMW, Honsubishi Boebus, Airing, Shexxon, Mobron

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