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QUESTION 3 Which of the following statements regarding total risk is false? a. The capital asset pricing models computation of required rate of return is

QUESTION 3

  1. Which of the following statements regarding total risk is false?

a.

The capital asset pricing models computation of required rate of return is based on the assets total risk.

b.

Total risk equals systematic risk plus unsystematic risk.

c.

Unsystematic risk can be reduced through diversification.

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