QUESTIONS Which of the following statements is CORRECT? A portfolio that consists of all stocks in the market would have a required return that is equal to the risk-free rate O An investor can eliminate virtually all diversifiable risk if they hold a very large, well-diversified portfolio of stocks. An investor can eliminate virtually all market risk if they hold a very large, well-diversified portfolio of stocks. The standard deviation of a single stock must always be lower than the standard deviation of a portfolio that includes that stock The higher the correlation among stocks in a portfolio, the lower the risk inherent in the portfolio