1. Which statement about portfolio diversification is true?

   	a.	Proper diversification can reduce the total risk to zero.
   	b.	None of the options.
   	c.	The risk-reducing benefits of diversification will not occur if the risky assets are not correlated .
   	d.	Proper diversification can eliminate systematic risk.
   	e.	Diversification could reduce a portfolio's total risk but does not affect the portfolio's expected return.