Question: Choose the correct statement regarding diversification. A . We can eliminate most of our firm specific risk by holding a portfolio of 5 stocks from

Choose the correct statement regarding diversification.
A. We can eliminate most of our firm specific risk by holding a portfolio of 5 stocks from a variety of industries
B. We can eliminate most of our market risk by hold a portfolio of 5 stocks from a variety of industries
C. We can eliminate most of our firm specific risk by holding a portfolio of 50 stocks from a variety of industries
D. We can eliminate most of our market risk by holding a portfolio of 50 stocks from a variety of industries

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