Which of the Following Statements Is FALSE

question 75

Multiple Choice

Which of the following statements is FALSE?

• A)Firm-specific news is good or bad news about the company itself.
• B)Firms are affected by both systematic and firm-specific risk.
• C)When firms carry both types of risk,only the firm-specific risk will be diversified when we combine many firms' stocks into a portfolio.
• D)The risk premium for a stock is affected by its idiosyncratic risk.

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Definitions:

Overt Aggression

Visible, external acts of verbal or physical hostility towards others.

School Years

The period of life spent in educational institutions, acquiring knowledge from early childhood through secondary education.

Opposite-Sex Friends

Relationships of friendship between individuals of different genders, characterized by mutual respect and non-romantic affection.

School-Age Girls

Female children typically aged between 6 and 12 years, enrolled in elementary or primary education.