Which of the following statements regarding investment risk…
Which of the following statements regarding investment risk are correct? 1. Rational investors will form portfolios and eliminate systematic risk. 2. Beta is a measure of systematic, non-diversifiable 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.