Which of the following statements is true?

Select one:

A. Beta identifies the appropriate level of risk for which an investor should be compensated.

B. Unsystematic risk is not diversifiable, so there is no reward for taking on such risk.

C. Stocks with same betas will always earn different returns.

D. The market risk premium is calculated by multiplying beta by the difference between the expected return on the market and the risk-free rate of return.