Randomly adding securities to a portfolio:

[select choice that best completes the sentence]

A) Reduces total risk by lowering the diversifiable risk

B) increases total risk by slightly decreasing systematic risk but increasing diversifiable risk

C) Reduces both systematic and divesrifiable risk, but increases total risk

D) Reduces total risk by reducing systematic risk

E) Increases systematic risk but it reduces diversifiable risk, mantaining the total risk somewhat constant