You have developed the following data to examine the impact of portfolio diversification. Which scenario seems to be out of place? # of stocks in the portfolio Diversifiable Risk Market Risk L. 2 stocks M. 20 stocks N. 30 stocks O. 60 stocks P. 100 stocks ΟΝ OL COM O P 0.15 0.07 0.11 0.08 0.06 0.20 0.20 0.20 0.20 0.20

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You have developed the following data to examine the impact of portfolio diversification. Which scenario seems to be out of place?
# of stocks in the portfolio
Diversifiable Risk
Market Risk
L. 2 stocks
M. 20 stocks
N. 30 stocks
O. 60 stocks
P. 100 stocks
ΟΝ
OL
O
M
P
0.15
0.07
0.11
0.08
0.06
0.20
0.20
0.20
0.20
0.20
Transcribed Image Text:You have developed the following data to examine the impact of portfolio diversification. Which scenario seems to be out of place? # of stocks in the portfolio Diversifiable Risk Market Risk L. 2 stocks M. 20 stocks N. 30 stocks O. 60 stocks P. 100 stocks ΟΝ OL O M P 0.15 0.07 0.11 0.08 0.06 0.20 0.20 0.20 0.20 0.20
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