"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"