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Which of the following statements is FALSE? O A. The risk premium for a stock is affected by its idiosyncratic risk. OB. Firm-specific news is
Which of the following statements is FALSE? O A. The risk premium for a stock is affected by its idiosyncratic risk. OB. Firm-specific news is good or bad news about the company itself. OC. When firms carry both types of risk, only the firm-specific risk will be diversified when we combine many firms' stocks into a portfolio. OD. Firms are affected by both systematic and firm-specific risk
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