× Didn't find what you were looking for? Ask a question
Top Posters
Since Sunday
e
5
e
4
4
d
4
o
3
p
3
t
3
3
m
3
p
3
m
3
f
3
Home Q & A Board Other Fields Homework Help Business Finance
New Topic  
johnpaech johnpaech
wrote...
Posts: 1098
Rep: 7 0
6 years ago
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.
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
Read 46 times
2 Replies

Related Topics

Replies
wrote...
#1
6 years ago
A
Explanation:  A) Fluctuations of a stock's returns that are due to firm-specific news are not common risks.
johnpaech Author
wrote...
#2
5 years ago
Really appreciate the help
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1010 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 164
  
 1662
  
 397
Your Opinion
Which 'study break' activity do you find most distracting?
Votes: 741
Previous poll results: What's your favorite coffee beverage?