Final answer:
Diversifiable, unique, and unsystematic risks can be mitigated in a well-diversified portfolio, unlike market and systematic risks which affect the entire market. Thus, the correct option is B.
Step-by-step explanation:
For a well-diversified portfolio, the diversifiable, unique, and unsystematic risks are negligible. These types of risks are specific to individual investments or sectors and can be mitigated through diversification, which involves investing in a range of companies or financial instruments. By contrast, market and systematic risk affect the entire market and cannot be avoided through diversification.
Diversification is a strategy recommended by financial advisors to reduce the impact of firm-specific events that can affect the value of investments. Mutual funds are one way to achieve diversification because they pool money from many investors to buy a broad range of stocks or bonds, thereby following the principle of not putting "all your eggs in one basket." Thus, the correct option is B.