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7 points Which of the following statements is FALSE? A Assuming the CAPM holds. If the beta of stock A is targer the beta of

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7 points Which of the following statements is FALSE? A Assuming the CAPM holds. If the beta of stock A is targer the beta of stock B, then the required risk premium for stock A must be larger than that for stock 8. The risk premium of a security is determined by its systematic risk and does not depend on its diversifiable risk The risk premium for diversifiable risk is zero. D. Fluctuations of a stocks returns that are due to firm-specific news are diversiflable risks, E. None of the above

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