You Are Managing a Portfolio That Consists of U

You are managing a portfolio that consists of U.S.equities.You have prepared a presentation to use when you discuss the possibility of adding international stocks to your client's portfolio.
- Draw a graph that shows the risk of the portfolio relative to the number of stocks held in the portfolio.
- When your client arrives, he is surprised at your suggestion that he add international stocks, but is willing to listen to your statements to justify your recommendations.State two reasons why he should consider the international stocks and briefly explain each.