Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio?
a) adding more such stocks will reduce the portfolios unsystematic, diversifiable, risk.
b) adding more such stock will increase the portfolios expected rate of return.
c) adding more such stocks will have no effect on the portfolios risk.
d) adding more such stock will reduce the portfolios beta coefficient and thus its systematic risk.
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