Which of the Following Statements Is FALSE

question 84

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 return 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:

Early-onset

The occurrence of symptoms or the diagnosis of a disease or condition at an earlier age than is typical or expected.

Alzheimer's Disease

A progressive neurological disorder that results in memory loss, cognitive decline, and personality changes, ultimately leading to severe dementia.

Progression

The process of developing or moving forward, typically indicating the growth or advancement of disease, skills, or societal issues.

Aphasia

A condition characterized by the impairment of language abilities, including difficulties in speaking, understanding language, reading, and writing.