Which of the Following Statements About Diversification Is/are Correct

Which of the following statements about diversification is/are correct?
I.Diversification may be able to reduce the risk of a portfolio to less than the weighted average risk of the assets.
II.Diversification is always prudent and should be expanded to include new, unrelated products whenever possible.

A) Only statement I is correct
B) Only statement II is correct
C) Both statements I and II are correct
D) Neither statement I nor II is correct

Correct Answer:

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