Consider the following statements related to modern portfolio theory. For each of the following statements indicate whether the statement is true or false and explain why.
a) All other things being equal, increasing the size of a portfolio by adding more securities to it should increase diversification benefits.
b) As more securities are added to a portfolio the total risk level of that portfolio will decrease at an increasing rate.
c) Adding securities that have low correlations with the original portfolio increases diversification benefits.
d) It is possible for an astute investor to eliminate some systematic risk via portfolio diversification.