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Which of the following statements is FALSE? Group of answer choices c) The volatility in a large portfolio will decline until only the systematic risk
Which of the following statements is FALSE? Group of answer choices c) The volatility in a large portfolio will decline until only the systematic risk remains d) Fluctuations of a stock's return that are due to economy-wide news are common risks. e) When we combine many stocks in a large portfolio, the firm-specific risks for each stock will average out and be diversified. b) Stock returns will tend to move together if they are affected similarly by economic events. a) The risk premium of a security is determined by both its systematic risk and its diversifiable risk
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