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Which of the following statements are true statements regarding systematic risk? I. Systematic risk can be effectively eliminated through portfolio diversification. II. Systematic risk is

Which of the following statements are true statements regarding systematic risk?

I. Systematic risk can be effectively eliminated through portfolio diversification.

II. Systematic risk is compensated for by a risk premium.

III. Systematic risk is measured by beta.

IV. As rational investors hold well-diversified portfolios, the market will not pay a risk premium for holding systematic risk.

A.

I and IV only

B.

II only

C.

I, III, and IV only

D.

II and III only

E.

III and IV only

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Previous Question Next Question

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