Which of the following statements is most correct? (Ch. 8)

Group of answer choices

a.Diversification helps to eliminate firm-specific risk (also known as non-systematic or diversifiable risk).

b.Diversification does not affect risk.

c.Diversification works better when investments are concentrated within one industry rather than across all industries.

d.None of these statements are correct.

e.Diversification helps to eliminate market risk (also known as systematic or non-diversifiable risk).