Inflation, recession, and high interest rates are economic events that are best characterized as being... A) systematic risk factors that can be diversified away. B) company-specific risk factors that can be diversified away. C) among the factors that are responsible for market risk. D) risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers. E) irrelevant except to governmental authorities like the Federal Reserve. Which of the following statements best describes what you should expect if you randomly select stocks and add them to your portfolio? A) Adding more such stocks will reduce the portfolio's unsystematic, or diversifiable, risk. B) Adding more such stocks will increase the portfolio's expected rate of return. C) Adding more such stocks will reduce the portfolio's beta coefficient and thus its systematic risk. D) Adding more such stocks will have no effect on the portfolio's risk. E) Adding more such stocks will reduce the portfolio's market risk but not its unsystematic risk.