40. All of the following statements describing diversification are correct EXCEPT A. diversification is not enhanced by the addition of foreign securities to a portfolio because they are always highly correlated with domestic equity B. to minimize interest rate risk, one could diversify within the fixed-income asset category by staggering bond maturity dates C. to minimize business risk, one could allocate among a number of asset categories and purchase mutual funds D. to reduce liquidity risk, one would keep a sufficient portion of assets in cash or cash equivalent assets