d. In reality, it is impossible to see an asset that generates a return that is a 13 Which one of the following statements is most correct? When you keep adding stocks to a portfolio, Select one: a. risk will decline; but it will hit a point where adding more stocks does not reduce risk by much. That remaining risk is called idiosyncratic risk. stion b. risk will decline until it becomes zero. C. risk will decline initially then it starts rising again. d. risk will decline; but it will hit a point where adding more stocks does not reduce risk by much. That remaining risk is called systematic risk. Explain the differences between the CAPM and the Fama-French 3-Factor Mode