True or false?

a. Investors prefer diversified companies because they are less risky.

b. If stocks were perfectly positively correlated, diversification would not reduce risk.

c. Diversification over a large number of assets completely eliminates risk.

d. Diversification works only when assets are uncorrelated.

e. A stock with a low standard deviation always contributes less to portfolio risk than a stock with a higher standard deviation.

f. The contribution of a stock to the risk of a well-diversified portfolio depends on its market risk.

g. A well-diversified portfolio with a beta of 2.0 is twice as risky as the market portfolio.

h. An undiversified portfolio with a beta of 2.0 is less than twice as risky as the market portfolio.