1. Which of the follow statements regarding unsystematic risk is (are) true?

   I. Can be effectively eliminated by portfolio diversification.

   II. Is measured by covariance with a well-diversified portfolio.

   III. In the CAPM it is measured by beta.

   IV. Results from events that affect a specific firm or a group of similar firms in an industry.

   	A.	I only.
   	B.	I and IV.
   	C.	I, II, and IV.
   	D.	I, III, and IV.
   	E.	I, II, III, and IV.