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Which of the Following Statements Is FALSE

Question 75

Multiple Choice

Which of the following statements is FALSE?


A) Firm-specific news is good or bad news about the company itself.
B) Firms are affected by both systematic and firm-specific risk.
C) When firms carry both types of risk,only the firm-specific risk will be diversified when we combine many firms' stocks into a portfolio.
D) The risk premium for a stock is affected by its idiosyncratic risk.

Correct Answer:

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