Which of the following statements about systematic and unsystematic risk is true?

I. Systematic risk affects the entire market and cannot be eliminated through diversification.

II$.$ Unsystematic risk can be reduced by holding a well$-$diversified portfolio.

III. Beta measures a stock's exposure to unsystematic risk.

Question $22$Answer

A$.$

I only

B$.$

II only

C$.$

III only

D$.$

I and II$$

E$.$

I and III

F$.$

II and III

G$.$

I, II$,$ and III

H$.$

none of these