13 of 30 Which of the following is a TRUE statement of modern portfolio theory? Mark O a. It stipulates that investors should diversify their investments so as to be unnecessarily exposed to a single negative event. ob. There is no limit to diversification in portfolio theory if you are invested in all stocks in a countries stock market. O c. It shows how to form portfolios with the highest possible expected rate of return for any given level of risk. od. It states that securities should be managed within a portfolio, rather than individually, to lower risk-reduction gains. O e. It demonstrates that by combining securities into portfolios, we can increase risk. Unsure