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Which of the following statements is CORRECT? a. Once a portfolio has about 5 stocks, adding additional stocks will not reduce its risk by even

Which of the following statements is CORRECT?

a.

Once a portfolio has about 5 stocks, adding additional stocks will not reduce its risk by even a small amount.

b.

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. Once a portfolio has about 5 stocks, adding additional stocks will not reduce its risk by even a small amount.

c.

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

d.

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

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