Question: Which statement about portfolio diversification is correct? A. Proper diversification can almost eliminate nonsystematic risk. B. The risk-reducing benefits of diversification do not occur

Which statement about portfolio diversification is correct? A. Proper diversification can almost eliminate nonsystematic risk. B. The risk-reducing benefits of diversification do not occur meaningfully until at least 50-60 individual securities have been purchased. C. Because diversification reduces a portfolio's total risk, it can increase the portfolio's expected return. OD. Typically, as more securities are added to a portfolio, total risk would be expected to increase at a decreasing rate E. Proper diversification can eliminate systematic risk and increases return.

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