5 of 30 Q Which of the following statements is most correct? 1. Market participants are able to eliminate virtually all market risk if they hold a large diversified portfolio of stocks II. Market participants are able to eliminate virtually all company specific risk if they hold a large diversified portfolio of stocks III. It is possible to have a situation where the market risk of a single stock is less than that of a well-diversified portfolio O a. Only I is correct O b. Only I and III are correct Oc. Only II and III are correct O d. Only II is correct Oe. Only Ill is correct