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Which of the following statements is CORRECT? Total Risk equals Beta and Standard Deviation Systematic risk is stock specific. Therefore, it can be eliminated by

Which of the following statements is CORRECT?

		Total Risk equals Beta and Standard Deviation
		Systematic risk is stock specific. Therefore, it can be eliminated by building a portfolio of diversified stocks.
		Systematic risk can be measured by regressing a stock's returns against the returns of the Market Portfolio.
		Firm-specific risk cannot be diversified away. Therefore, investors require more compensation to bear such risks.

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