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Which of the following statements are true statements regarding systematic risk?

I. Systematic risk can be effectively eliminated through portfolio diversification.

II. Systematic risk is compensated for by a risk premium.

III. Systematic risk is measured by beta.

IV. As rational investors hold well-diversified portfolios, the market will not pay a risk premium for holding systematic risk.

A. I and IV only

B. II only

C. I, III, and IV only

D. II and III only

E. III and IV only

Financial Management, Finance

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