Question: 1 5 Multiple Choice 1 3 points ( Lecture 9 - Risk and Return ) Which of the following statements is FALSE? When we combine

15
Multiple Choice 13 points
(Lecture 9-Risk and Return)
Which of the following statements is FALSE?
When we combine many stocks in a large portfolio, the firm-specific risks for each stock will average out and be diversified.
The risk that the Federal Reserve will decrease interest rates in the coming year is a systematic risk.
The risk premium for non-diversifiable risk is zero.
None of the above.
1 5 Multiple Choice 1 3 points ( Lecture 9 - Risk

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