39. Which of the following statements is most correct? a. Risk refers to the chance that some unfavorable event will occur, and a probability distribution is completely described by a listing of the likelihood of unfavorable events. b. Portfolio diversification reduces the variability of returns on an individual stock. c. When company-specific risk has been diversified the inherent risk that remains is market risk, which is constant for all securities in the market. d. The CAPM/SML relates required returns to firms' market risk. The slope and intercept of this line cannot be controlled by the investment manager e. None of above