Which statement about risk is true?
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An investor can eliminate all market risk if they hold a very large and well-diversified portfolio of stocks.
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The lower the correlation between the stocks in a portfolio, the lower the risk inherent in the portfolio.
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The market risk of a single stock is always higher than that of a portfolio that includes the stock.
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Almost half of the risk inherent in an average individual stock can be eliminated if the stock is held in a reasonably well diversified portfolio, which is one containing 20 or more stocks in a number of different industries.