Question: Choose the most accurate statement Select one: a. Systematic risks can always be avoided by diversification because they are risks in the financial system and

Choose the most accurate statement Select one:

a. Systematic risks can always be avoided by diversification because they are risks in the financial system and can be eliminated by adding more assets in a portfolio.

b. Non-systematic risks can always be avoided by diversification because they are risks in the financial system that can be eliminated by choosing the most negatively pairwise correlated stocks.

c. Systematic risks cannot be avoided by diversification because they are risks pertaining to particular assets in the market.

d. Non-systematic risks can be avoided by diversification because they are not risks associated with changes in macroeconomic factors that affect all assets traded in any market.

e. Non-systematic risks cannot be avoided by diversification because they are risks pertaining to particular assets in the market.

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