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"Which of the following statements regarding investment risk is correct? 1.Beta is a measure of systematic, non-diversifiable risk. 2.Rational investors will form portfolios and eliminate systematic risk. 3.Rational investors will form portfolios and eliminate unsystematic risk. 4.Systematic risk is the relevant risk for a well-diversified portfolio. 5. Beta captures all the risk inherent in an individual security."

  • 2 and 5.
  • "1, 2, and 4."
  • "1, 3, and 4."
  • "2, 3, and 4"

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