Evaluate the following statement: "Adding a high risk emerging market bond to a portfolio can actually reduce overall portfolio risk."
a. The statement is true but under the condition that the high risk emerging bond should only represent a small portion of a long term portfolio.
b. This statement is false because the bond must show evidence of lower risk markets.
c. This statement is inconclusive because we don't know if the market is integrated or segmented.
d. This statement is false because a high risk bond from a high risk market is too much to derive significant benefits.
e. This statement is true because the correlations between emerging and developed market instruments are low, zero or negative.