How an asset held as part of a portfolio

Reference no: EM132055559

Question: You have probably heard the saying, "Don't put all of your eggs into one basket." Using the terms for stand-alone risk, market risk, and diversifiable risk, discuss and explain how an asset (for example, a single stock) held as part of a portfolio is generally less risky than the same asset held in isolation. Explain if you think the risk of a portfolio can be reduced to zero by increasing the number of stocks in the portfolio.

Reference no: EM132055559

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