Which of the following statements regarding investment risk is correct?

1.) Beta is a measure of systematic, non-diversifiable risk 

2.) Rational investors will form portfolios and eliminate systematic risk 

3.) Rational investors will form portfolios and eliminate unsystematic risk 

4.) Systematic risk is the relevant risk for a well diversified portfolio 

5.) Beta capture all the risk inherent in an individual security.

a.) 1 and 5

b.) 2 and 5

c.) 1,3, and 4

d.) 2,3, and 4

Answer rating: 100% (QA)

The correct statement regarding investment risk is c 1 3 and 4 Explanation 1 Beta is a measure of sy... View the full answer