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4. For what type of risk is an average investor rewarded? a. What is the difference between firm-specific risk and market risk? b. Which risk
4. For what type of risk is an average investor rewarded? a. What is the difference between firm-specific risk and market risk? b. Which risk is relevant when determining a stock's required rate of return? Why? C. Which risk is measured by a stock's beta coefficient, B? 5. What actions do investors take when the return they require to purchase an investment is different from the return the investment is expected to produce
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