Which of the following statements is true? Risk refers to the chance that some unfavorable event will occur, and a probability distribution is completely described by a listing of the likelihood of unfavorable events. Portfolio diversification reduces the variability of returns on an individual stock. When company specific risk has been diversified, the inherent risk that remains is market risk which is constant for all securities in the market. all of the choices are true. none of the choices are true. Question 7 2 pts Inflation, recession, and high interest rates are economic events which are characterized as Company specific risk that can be diversified away. market risk Systematic risk that can be diversified away. Diversifiable risk: Unsystematic risk that can be diversified away