Which of the Following Statements Is Correct Regarding Total Risk

Which of the following statements is correct regarding total risk?

A) A conglomerate will have more total risk than a firm that has one line of business.
B) All firms have about the same total risk because they are all exposed to the same market risk.
C) Total risk can be quantified by measuring the covariance between the firm and the overall market.
D) None of these statements are correct.

Correct Answer:

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