QUESTION 30 Which of the following statements is CORRECT? An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio 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 sto An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks A portfolio that consists of all stocks in the market would have a required return that is equal to the risk free rate