Which of the Following Statements Is False

question 82

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:

Repeat Customers

Individuals who purchase goods or services from the same company multiple times, displaying brand loyalty.

Customer Churn

The phenomenon where customers stop doing business with a company, often used as an indicator of customer dissatisfaction or competitive disadvantages.

Cloud-Based CRM

Cloud-based Customer Relationship Management (CRM) is a platform for managing a company's interactions with current and potential customers, hosted on remote servers and accessed over the internet.

CRM System

A technology for managing all your company's relationships and interactions with customers and potential customers, often aiming to improve business relationships.