Which of the following statements is correct? Check all that apply.

Systematic risk reflects the risk that remains after an investor has diversified his or her portfolio.

Possible sources of diversifiable risk include inflation and commodity price changes, changes in currency exchange rates, and fluctuations in interest rates.

The practice of diversification can effectively reduce an investor's systematic risk.

The phenomena and behaviors discussed above are based on the assumption that the majority of investors are risk averse. According to the concept of risk aversion, Check all that apply.

Investors prefer certainty to uncertainty, and therefore will accept a lower return to avoid a potentially larger and more uncertain return.

Risk$-$averse investors require a greater return for owning securities that exhibit greater risk.

The financial performance of an investment is best expressed as a:

Dollar amount, since it reflects the timing of the investment's return.

Dollar amount, since it dearly identifies the sum of money that can be spent by the owner of the investment.

Percentage, since it scales, or standardizes, the return earned from the investment by the investment's size.

Percentlge, as it ignores the timing of the return, such as one year or ten years.