Risk can be classified as diversifiable or nondiversifiable. Which one of the following statements is true with respect to this type of risk classification?

Select one:

A$.$ Systemic risks are generally diversifiable.

B$.$ Private insurance tends to concentrate on nondiversifiable risks; government insurance is often suitable for diversifiable risks.

C$.$ Diversifiable risks tend not to be correlated so they can be managed through diversification or spread of risk.

D$.$ Inflation, unemployment and natural disasters, such as hurricanes, are examples of diversifiable risk.