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Why should stock market investors ignore firm specific risks when calculating required rates of return? A) There is no method for quantifying specific risks. B)

Why should stock market investors ignore firm specific risks when calculating required rates of return?

A) There is no method for quantifying specific risks.

B) Firm specific can be diversified away.

C) Firm specific risks are compensated by the risk-free rate.

D) There is no such thing as firm specific risk.

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