The risk associated with a portfolio increases as the investor increases the number of stocks in her portfolio.

Name: The risk associated with a portfolio increases as the investor increases the number of stocks in her portfolio.
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The risk associated with a portfolio can be reduced by diversification. Holding a larger number of stocks in a portfolio can reduce the overall risk as it reduces the impact of any one stock's performance on the portfolio.

The Risk Associated with a Portfolio Increases as the Investor