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As the number of stocks in a portfolio rises, a. neither firm-specific risks nor market risk falls. b. market risk falls; firm-specific risks do not. c. firm-specific risks fall; market risk does not. d. both firm-specific risks and market risk fall.

Sagot :

The correct statement is if the number of stocks in a portfolio rises then the firm-specific risks fall; market risk does not. .

What happened if number of stock would be increased in the portfolio?

If the number of the stocks increases in the portfolio, then the total overall return from the portfolio will decreased.

it usually happens because some stock in the stock market generally outperforms the other stock. On the other hand, most of the stocks provides an average return on them.

The risk in the portfolio can be reduced by adopting the diversification in the portfolio.

Learn more about the portfolio here:-

https://brainly.com/question/17165367

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