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Explain why the risk premium of a stock does not depend on its diversifiable risk. (Select the best choice below.) A. Although investors must hold
Explain why the risk premium of a stock does not depend on its diversifiable risk. (Select the best choice below.) A. Although investors must hold diversifiable risk, they don't care about it, so there is no risk premium. B. Investors can remove diversifiable risk from their portfolio by diversifying. They therefore do not demand a risk premium for it. C. Investors care about diversifiable risk, but hedge their positions so they don't demand a risk premium. D. Investors don't care about diversifiable risk and so don't hold any
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