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Diversifiable risk, also known as unsystematic risk, is defined as firm-specific risk and hence impacts the price of that individual stock rather than affecting the

  1. Diversifiable risk, also known as unsystematic risk, is defined as firm-specific risk and hence impacts the price of that individual stock rather than affecting the whole industry or sector in which the firm operates.Therefore, would it be worthwhile to diversify an investment with unsystematic risk?
  2. What are the benefits and limitations of a company paying a dividend?
  3. Under what conditions are the dividend growth rate at least equal to the growth rate of the cash flow?

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