Portfolio managers pick stocks for their clients' portfolios based on the investment objective of the portfolio and several other factors. Based on your understanding of portfolio risk, identify the one TRUE statement below. If negatively correlated stocks are added to the portfolio, it is possibl e for the portfolio beta to be less than the lowest beta of any of the st ocks in the portfolio. Portfolio standard deviation will increase if more stocks that are negati vely correlated with other stocks are added to the portfolio. Because of the effects of diversification, the portfolio's standard devia tion is likely to be more than the average of all stocks' standard deviat ions. A portfolio's standard deviation is likely to be smaller than the weighte d average of all stocks' standard deviations, because diversification low ers the portfolio's risk