d. On the basis of your findings in parts, what relations return? Explain. G5 G6...
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d. On the basis of your findings in parts, what relations return? Explain. G5 G6 O P5.25 for his portfolio, Jack o r his portfolio, Jack Cashman randomly selected securities from all those inted on the New York Stock Exchange Hehan with one security and added securities one by one until a total of 20 securities were held in the portfolio. After each security was added, Jack calculated the portfolio Standard deviation. The calculated values follow Number of Securities Number of Securities Portfolio Risks 14.5% 13.39 12.2% 11.2% 10.3% 9.5% 8.8% 8.2% Portfolio Risk, 5 7.00% 6.80% 6.70% 6,65% 6.50% 6.56% 6.52% 6.5% 6,489 6.47% a. On a graph showing the number of securities in the portfolio xaxis and portfolio risk, sty-axis), plot the portfolio risk given the data in the preceding table b. Divide the portfolio risk in the graph into its undiversifiable and diversifiable risk components, and label cach of these on the graph. c. Describe which of the two risk components is the relevant risk, and explain why it is relevant. How much of this isk exists in Jack Cachman portfolio
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