In a conservative portfolio (100 percent invested in bonds),instead,investing 20 percent of the assets to a broad selection of stocks,would increase the expected return on the portfolio,but not the risk.

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Adding stocks to a conservative portfolio increases the expected return because stocks have a higher expected return than bonds. However, it also increases the risk because stocks are more volatile than bonds.

In a Conservative Portfolio (100 Percent Invested in Bonds),instead,investing 20