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Which of the following statements are correct concerning unsystematic risks? I. Unsystematic risks can be essentially eliminated by investing in the market portfolio. II. The

Which of the following statements are correct concerning unsystematic risks?

I. Unsystematic risks can be essentially eliminated by investing in the market portfolio.

II. The market rewards investors for unsystematic risk by paying a risk premium.

III. Unsystematic risks are generally associated with an individual firm or industry.

IV. Beta measures unsystematic risk.

Question 9 options:

I and IV only

I and III only

I, II, and III only

II and IV only

II and III only

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