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Which of the following statements is CORRECT? a . If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of
Which of the following statements is CORRECT? a If you add enough randomly selected stocks to a portfolio, you can completely eliminate all of the market risk from the portfolio.b Diversifiable risk can be reduced by forming a large portfolio, but normally even highlydiversified portfolios are subject to market or systematic risk.c A large portfolio of stocks whose betas are greater than will have less market risk than a single stock with a beta d A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.e A large portfolio of randomly selected stocks will have a standard deviation of returns that is greater than the standard deviation of a stock portfolio if that one stock has a beta less than
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