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Why should stock market investors ignore unique risk when calculating the expected rate of return of an individual security? a. Beta includes a component to
Why should stock market investors ignore unique risk when calculating the expected rate of return of an individual security?
a. Beta includes a component to compensate for unique risk.
b. There is no method for quantifying unique risks.
c. Unique risk is assumed to be eliminated through portfolio diversification.
d. Unique risk is compensated by the risk-free rate.
e. Unique risk is equal across all risky assets.
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