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4 ) Which of the following statements is false a ) Firm - specific news is good or bad news about the company itself )

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4 ) Which of the following statements is false a ) Firm - specific news is good or bad news about the company itself ) Firms are affected by both systematic and firm - specific risk . ( ) When firms carry both types of risk , only the firm- specific risk will be diversified when we combine many firms stocks into a portfolio I ) The risk premium for a stack is affected by its idiosyncratic risk e ) None of the above

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