For financial risks, which is INCORRECT?

1. Systematic risks can be avoided using diversification strategies.

2. Assets with negatively correlated returns help reduce the riskiness of a portfolio.

3. Stocks A and B can both be correctly priced despite having different reward-to-risk ratios.

4. The reward for risk increases as diversifiable risk increases.

	A.	Only 2
	B.	Only 4
	C.	3 and 4
	D.	1,2,3
	E.	1,3,4