A client holds an investment portfolio covering a number of different equities. The client is concerned about the following risks:

Risk 1 - The risk that inflation will fall sharply Risk 2 - The risk that the UK pound will fall significantly against the US dollar Risk 3 - The risk that the pharmaceutical industry will sharply decline Risk 4 - The risk that a particular company's management team will perform poorly Which of the following statements is true?

A) Only Risks 1 and 2 can be mitigated by using pound cost averaging

B) Only Risks 1 and 4 are likely to reduce by using hedging strategies

C) Only Rists 2 and 3 can be mitigated by using the efficient market hypothesis

D). O Only Risks 3 and 4 are likely to reduce by using diversification strategies