estions b Multiple Choice 08-060 Which of the following statements is CORRECT? O a. It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock O b. Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount. O c. An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfollo of stocks O d. An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks. O e. The higher the correlation between the stocks in a portfolia, the lower the risk inherent in the portfolio icon K b Multiple Choice 08-060