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Question 25 - 28: Which statement about diversification is correct? (a) Diversification reduces the market risk of a portfolio. (b) Diversification reduces the market risk

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Question 25 - 28: Which statement about diversification is correct? (a) Diversification reduces the market risk of a portfolio. (b) Diversification reduces the market risk of a portfolio, if the securities in the portfolio are sufficiently negatively correlated (c) Diversification reduces the unique risk of a portfolio. (d) Diversification reduces the unique risk of a portfolio, if the securities in the portfolio are sufficiently negatively correlated

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