b. False 7. As randomly selected securities are combined to create a portfolio, the the portfolio decreases until 20 to 30 securities are included. The portion of the risk eliminated isrisk, while that remaining is diversification is to risk of risk. So the purpose of 2pts a. diversifiable; non-diversifiable; total, maximize return b. total; non-diversifiable; diversifiable; minimize risk c. relevant; irrelevant; total; maximize return d. total; diversifiable; non-diversifiable; minimize risk