Which of the following statements is CORRECT?

a. 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 stock.

b. Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount.

c. An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well-diversified portfolio of stocks.

d. The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.

e. An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks