Question: Which statement is correct about idiosyncratic risks? I) Investors expected a reward for holding those risks. II) Those risks can be mitigated or even eliminated

Which statement is correct about idiosyncratic risks?

I) Investors expected a reward for holding those risks.

II) Those risks can be mitigated or even eliminated by proper diversification.

III) idiosyncratic risk factors have a beta = 1.

Which statement is correct about idiosyncratic risks?

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