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:

Employee Counselling

The provision of professional psychological support or advice to employees to help them manage personal or job-related challenges.

Employee Assistance

Programs or services offered by employers to support the wellbeing of employees, including counseling, financial planning, and health services.

Employee Communication

The exchange of information and messages between an organization and its employees, crucial for maintaining informed workforces, engagement, and organizational culture.

Downward Communication Systems

This refers to the flow of information from higher levels of management or leadership down to lower-level employees within an organization, facilitating instructions, policies, and feedback.