Multiple Choice
Which of the following statements is/are correct?
I. Unsystematic risk can be eliminated through diversification.
II. Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms, like inflation, political events, etc.
A) I only
B) II only
C) Both I and II
D) Neither I nor II
Correct Answer:

Verified
Correct Answer:
Verified
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