Celves

$(1)12$

:$bB=1$

Question $2$

$3$ pts

Which of the following statements is CORRECT?

It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock.

An investor can eliminate virtually all diverifitable risk if he or she holds a very large, welldiversified portfolio of stocks.

An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks.

Once a portfolio has about $40$ stocks, adding additional stocks will not reduce its risk by even a small amount.

The higher the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.$$*812$#$45789$QwERTYU$1$ASDFGHJKZXCVBNM