Which of the following statements is FALSE? . When we combine many stocks in a large portfolio, the firm-specific risks for each stock will average out and be diversified. B. Recent data showed stronger economy and higher inflation in March 2021. The risk that the Federal Reserve will increase interest rates in 2021 is a systematic risk. c. The risk premium for non-diversifiable risk is zero. D. Fluctuations of a stock's returns that are due to industry-specific news are diversifiable risks. E None of the above. L) A Moving to another question will save this response. Close Window