ccording to the second article, which of the following statements is true? Hint: Assignment2uestion A 0 C D The portfolto diversification benefit of investors has increased Arbitrary stocks will be more correlated to the market than before Arbitrary two stocks in the market will be less correlated than before Passive investors will demand more stocks for their portfolios than before THE RURALOV PRACHVOL UVL NO. Has Idiosyncratic Volatility Increased? Not in Recent Times Have Individual Stocks Become More Volatile? An Empirical Exploration of Idiosyncratie Risk JOHIN Y CAMPBELL, MARTIN LUTTAU, BURTONG MALKIEL and YEKIAO XU Abstract ABSTRACT This directed the validity of maste in vele Overde first relative to market Accent yeting individuals and the plantary of the man wa type de where the heros de tahlil diction based. All the stility dically and help to print GDP growth Marketitty de her del Priors that may be for the Tidigare This study successfully replicates the key findings of Campbell, Lettan, Malldel, and Xu (2001). We document that aggregate Idiosyncratie volatility increases over their sample period from 1962 to 1997. In out of sample analysis from 1926 to 1962 and 1998 to 2017, we find that idiosyncratie volatility (IV) decreases suggesting that their finding is sample-specife. We compare their measure of IV with those obtained from models such as the Fama and French (1993) three factor model and find that they are very similar. The Campbell et al. (2001) volatility measures can only be estimated at the aggregate level An advantage of asset pricing model-based IV is that they can be estimated series and how IV relates to commonly analyzed firmcharacteristics. In doing so, we provide further