Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) Well diversified stockholders do not consider corporate risk when determining required rates of return.
B) Undiversified stockholders, including the owners of small businesses, are more concerned about corporate risk than market risk.
C) Managers care only about market risk.
D) Market risk is important but does not have a direct effect on stock price because it only affects beta.
E) All of the statements above are false.