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Which of the following statements concerning risk are correct? I. Non-diversifiable risk is measured by standard deviation. II. The risk premium increases as diversifiable risk

Which of the following statements concerning risk are correct? I. Non-diversifiable risk is measured by standard deviation. II. The risk premium increases as diversifiable risk increases. III. Systematic risk is another name for non-diversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.

a. I and III only

b. II and IV only

c. I and II only

d. III

e. I, II, and III only

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