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Which of the following statements is CORRECT? Astocks beta indicates its firm-specific risk, or diversihable risk. CAPM takes the diversifiable risk into consideration An investor

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Which of the following statements is CORRECT? Astocks beta indicates its firm-specific risk, or diversihable risk. CAPM takes the diversifiable risk into consideration An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks A security's beta measures its non-diversifiable, or market risk relative to that of a well-diversified portfolio, such as the market portfolio An investor will be compensated for the diversifiable risks

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