How does the diversification of an investor's portfolio avoid risk? A. If an investor buys stocks that are negatively correlated, as the number of stocks held increases, the overall variance of the portfolio increases. B. If an investor buys stocks that are positively correlated, as the number of stocks held increases, the overall variance of the portfolio increases. C. If an investor buys stocks that are negatively correlated, as the number of stocks held increases, the overall variance of the portfolio decreases. D. If an investor buys stocks that are positively correlated, as the number of stocks held increases, the overall variance of the portfolio decreases.
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