The Capital Asset Pricing Model (CAPM) disregards diversifiable risk because the model Select one:

a. Recognizes that diversifiable risk can be virtually eliminated with a large enough portfolios.

b. Assumes that investors are risk neutral but not risk averse.

c. Assumes that investors will be holding anywhere from one security to the entire market of securities.

d. Assumes that diversifiable risk represents that aspect of financial risk which is unique to that security and not related to the financial risk of the market.