C: C is quoted fashion retailer. Daniels believes that the current share price of 2.58 undervalues the company significantly, making it a suitable target. He is also interested in Company C as he feels it would have a good fit with his existing fund portfolio and would diversify away some risk.

Which of the following statements concerning whether Daniels should buy Company C to diversify away portfolio risk are true?

(i) The shareholders on Investio Inc are unlikely to value such diversification.

(ii) Daniels should always try to reduce the average beta of his portfolio.

(iii) Daniels should seek to diversify away any systematic risk in his portfolio.

Select one:

a. (i), (ii) and (iii)

b. (i) and (ii) only

c. (i) only

d. None of them