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14. If an investor buys enough stocks, he or she can, through diversification, eliminate all of the unique risk inherent in owning stocks, but as

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14. If an investor buys enough stocks, he or she can, through diversification, eliminate all of the unique risk inherent in owning stocks, but as a general rule it will not be possible to eliminate all systemic risk. a. True b. False 15. A stock is expected to pay a dividend of $0.75 at the end of year one. The required rate of return is rs = 10.5%, and the company has a return on equity of 12.8%, while paying out half of its earnings as dividends. What is the stock's current price? t ol DOO a. $17.39 b. $17.84 bo c. $18.29 d. $18.75 e. $19.22

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