Which of the Following Statements Is Correct About the Risk-Reward

Multiple Choice

Which of the following statements is correct about the risk-reward relationship of various types of risks?

A) Firm-specific risk is rewarded with additional returns.
B) Market risk is not rewarded with additional returns.
C) Systematic risk is rewarded with additional returns.
D) Unsystematic risk is rewarded with additional returns.
E) Diversifiable risk is not rewarded with additional returns.