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 portfollo, it is possible for the portfolio beta to be less than the lomest beta of any of the stocks in the portfollo, Portfolio standand deviation will increase if more stocks that are negatively correlated with other stocks are added to the portfolio. Because of the effects of diversification, the portfolio's standard deviation is likely to be more than the average of all stocks' standard deviations. A portfolio's standard deviation is likely to be smaller than the weighted ave rage of all stocks' standard deviations, because diversification lowers the po rtfolio's risk