Which of the Following Statements Is FALSE

question 53

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Manual Claims Tracking

The process of monitoring and recording insurance claims by hand, without the use of automated software systems.

Clearinghouse

A central agency for the collection, classification, and distribution of information or transactions.

Incorrect NPI

Refers to an error in the National Provider Identifier, a unique identification number for health care providers in the United States.

Abuse

The intentional mistreatment or harmful behavior towards another person, animal, or entity that can be physical, emotional, sexual, or neglectful.