True statement about diversification

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Reference no: EM131357606

Which of the following is a true statement about diversification?

A. Diversification allows you to eliminate all risks when investing in stocks

B. The more correlated the stocks in your portfolio are, the more diversified you are

C. The more correlated the stocks in your portfolio are, the less diversified you are

D. The diversification benefits of adding a stock to your portfolio are the same if you own 2 stocks or 100 stocks

Reference no: EM131357606

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