individual stock's diversifiable risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock is held.

Name: individual stock's diversifiable risk, which is measured by its beta, can be lowered by adding more stocks to the portfolio in which the stock is held.
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Quizplus · Accepted Answer

Beta measures systematic risk, not diversifiable risk. Diversifiable risk can be reduced by adding more stocks to a portfolio, but beta remains a measure of market-related risk.

Individual Stock's Diversifiable Risk, Which Is Measured by Its Beta