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Which of the following statements is FALSE? A. When we combine many stocks in a...

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Accounting

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

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