You are considering investing a well-diversified portfolio of stocks. As a result, you will be exposed to a variety of risks. Some of the risks are associated with economic events that can be linked to risk and return. How best can these be best characterized?

A.) These are market risk that investors cannot eliminate even in a well-diversified portfolio.

B.) These are market risk that rational investors can easily eliminate through diligence and diversification.

C.) These are company specific risks because they can be eliminated through diversification.

D.) These are company specific risks because they cannot be eliminated through diversification.