Which of the following statements is MOST correct concerning diversification and risk?

A) Risk-averse investors often choose companies from different industries for their portfolios because the correlation of returns is less than if all the companies came from the same industry.

B) Risk-averse investors often select portfolios that include only companies from the same industry group because the familiarity reduces the risk.

C) Only wealthy investors can diversify their portfolios because a portfolio must contain at least 50 stocks to gain the benefits of diversification.

D) Proper diversification generally results in the elimination of risk.