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Which of the following statements is CORRECT? a. Market risk can be eliminated by forming a large portfolio, and if some Treasury bonds are held

Which of the following statements is CORRECT?

a.

Market risk can be eliminated by forming a large portfolio, and if some Treasury bonds are held in the portfolio, the portfolio can be made to be completely riskless.

b.

A portfolio with only a few stocks can have a lower market risk than a portfolio with many stocks.

c.

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

d.

A portfolio that consists of all stocks in the market would have a required return that is equal to the riskless rate.

e.

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

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