Which of the following statements is CORRECT?

Question 10 options:

	All are correct.
	It is possible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.
	The lower the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.
	An investor can NOT eliminate ALL market risk even if he or she holds a very large and well diversified portfolio of stocks.