Political risk is a diversifiable risk. Question 14 Which of the following statements about market risk and firm-specific risk is true? Market risk is an unsystematic risk, whereas firm-specific risk is systematic risk. Investors are not rewarded for taking market risk, whereas they are rewarded for taking firm-specific risk. O Market risk is a diversifiable risk, whereas firm-specific risk is a nondiversifiable risk. O Market risk is the relevant risk, whereas firm-specific risk is an irrelevant risk. Market risk includes a firm's default risk, whereas firm-specific risk includes economic risk Question 15 Which of the following securities generates a return that is closest to a risk-free rate of return