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Firm R and Firm T each have the same standard deviation of their cash flows. However, Firm R's returns are positively correlated with the market,

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Firm R and Firm T each have the same standard deviation of their cash flows. However, Firm R's returns are positively correlated with the market, while Firm T's returns are negatively correlated with the market. Which firm has the higher systematic risk? Which firm has the higher firm-specific risk? Firm R has higher systematic risk and firm-specific risk Both firms have same systematic and firm-specific risk Firm R has higher systematic risk; Both firms have same firm-specific risk Both firms have same systematic risk; Firm R has higher firm-specific risk

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