Question 17 1 pts Bob holds a portfolio of 20 stocks from different industries,

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Question 17 1 pts Bob holds a portfolio of 20 stocks from different industries, whereas Sharon holds only one stock in her portfolio. Assuming they each add a stock to their portfolio, which of the following is most likely? Relative to Bob's portfolio, Sharon's portfolio will experience the: O larger increase in total risk. larger increase in return. larger decrease in total risk. O larger decrease in market risk. Question 18 1 pts When using the Markowitz model, aggressive investors would select portfolios on the left end of the efficient frontier. O True O False

Explanation / Answer

17)

since sharon holds only one stock in her portfolio, relative to Bob , adding one more stock will give the benefit of diversification more to sharon than to Bob since Bob already has 20 stocks in his portfolio

hence the correct option is larger decrease in total risk

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