Which of the following reduces risk in a portfolio the greatest?
AIncreasing the number of shares from 10 to 20
BAll of these answers provide the same amount of risk reduction
CIncreasing the number of shares from 20 to 30
DIncreasing the number of shares in the portfolio from 1 to 10
Correct answer
D. Increasing the number of shares in the portfolio from 1 to 10
Explanation
The correct answer is Increasing the number of shares in the portfolio from 1 to 10.