Which action leads to the largest decrease in portfolio risk?

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Raising the number of stocks from 10 to 20Each of these options offers an equal reduction in riskExpanding the portfolio from 1 stock to 10 stocksIncreasing the stock count from 20 to 30

Explanation

Adding stocks to a portfolio reduces risk through diversification, but the greatest impact occurs when increasing from very few stocks. Moving from 1 to 10 stocks significantly lowers risk compared to increasing from 10 to 20 or 20 to 30 stocks.