13. Which of the following is NOT a diversifiable risk? A) The risk that oil prices rise, increasing production costs B) The risk of a product liability lawsuit C) The risk that the CEO commits fraud D) The risk of a key employee being hired away by a competitor 14. Which of the following statements is FALSE? A) Firm specific news is good or bad news about the company itself. B) Individual stocks 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. 15. The DuPont Identity expresses the firm's ROE in terms of: A) profitability, asset efficiency, and leverage. B) valuation, liquidity, and interest coverage. C) profitability, liquidity, and valuation. D) equity, assets, and liabilities