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According to the CAPM, the only risk that is important and priced by investors is firm-specific risk because: O a. Investors are perfectly diversified O

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According to the CAPM, the only risk that is important and priced by investors is firm-specific risk because: O a. Investors are perfectly diversified O b. Firm-specific risk is linked to the economy and is unavoidable Oc This statement is incorrect O d. Firm-specific risk cannot be diversified away O e. Systematic risk is diversifiable age

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