Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A)Because investors are risk averse,they will demand a risk premium to hold unsystematic risk.
• B)Over any given period,the risk of holding a stock is that the dividends plus the final stock price will be higher or lower than expected,which makes the realized return risky.
• C)The risk premium for diversifiable risk is zero,so investors are not compensated for holding firm-specific risk.
• D)Because investors can eliminate firm-specific risk "for free" by diversifying their portfolios,they will not require a reward or risk premium for holding it.

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Definitions:

Interview Process

A structured conversation where one party asks questions, and the other provides answers, typically used for the purpose of evaluation.

Behavioral Interview

An interviewing technique where candidates are asked to describe past behavior and performance in specific situations.

Working Interview

An interview where the applicant engages in an activity related to the job they're applying for.

Job-sample Interview

An interview technique where candidates are asked to perform tasks or work activities that are part of the job they are applying for.