Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) In a well-diversified portfolio, unsystematic risk can be largely diversified away, leaving behind systematic risk.
B) In a well-diversified portfolio, systematic risk can be largely diversified away, leaving behind unsystematic risk.
C) In a well-diversified portfolio, both systematic and unsystematic risk can be largely diversified away.
D) No matter how well diversified a portfolio is, unsystematic and systematic risk always exist.