Question $2$

Which of the following statement is incorrect?

Diversified investors face only systematic risk.

With complete diversification, all of the unsystematic risk is eliminated from the portfolio.

A beta of $1$ indicates a risk$-$free security, such as a U$.$S$.$ Treasury bill.

Most of the answers are correct except one.

In order to keep the total return of a stock equal to $100$ percent, the income component for that stock could be positive or zero.