1.2 Which statement about portfolio diversification is correct? Question (2 points) Proper diversification can eliminate systematic risk The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual securities have been purchased. Because diversification reduces a portfolio's total risk, it necessarily reduces the portfolio's expected return Typically, as more securities are added to a portfolio, total risk would be expected to decrease at a decreasing rate None of the statements is correct