9. Chapter MIC, Section ,06. Problem 061 Which of the following statements is CORRECT? a. An investor can eliminate almost all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks. b. An investor can eliminate almost all market risk if he or she holds a very large and well diversified portfolio of stocks. c. An investor can eliminate almost all risk if he or she holds a very large and well diversified portfolio of stocks. 1. The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio. B. Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount