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