Which of the Following Statements Is False

question 61

Multiple Choice

Which of the following statements is false?

• A) Fluctuations of a stock's returns that are due to firm-specific news are common risks.
• B) The volatility in a large portfolio will decline until only the systematic risk remains.
• C) When we combine many stocks in a large portfolio, the firm-specific risks for each stock will average out and be diversified.
• D) The risk premium of a security is determined by its systematic risk and does not depend on its diversifiable risk.

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Definitions:

Tone Modifiers

Elements used in speech or writing that adjust or alter the mood, attitude, or sense of urgency conveyed by the message.

Webcast

A media presentation distributed over the Internet using streaming technology to broadcast to a large, simultaneous audience.

Audience Participation

Involving the audience actively in presentations, performances, or events, enhancing engagement and interaction.

Live Video

A technology that allows instant broadcasting of events in real-time over the Internet.