Choose the most accurate statement Select one: O a. Non-systematic risks cannot be avoided by diversification because they are risks pertaining to particular assets in the market O b. If the total volatility of an asset is zero, it must be that the systematic risk of this asset is also zero c. Systematic risks cannot be avoided by diversification because they are risks pertaining to particular assets in the market O d. Systematic risks can always be avoided by diversification because they are risks in the financial system and can be eliminated by adding more assets in a portfolio e. Non-systematic risks can always be avoided by diversification because they are risks associated with changes in macroeconomic factors Which of the following statements is NOT true? Select one: O a. According to CAPM, it is impossible for an asset to be off the SML O b. CAPM assumes no transaction costs O c. CAPM assumes that borrowing equal lending O d. The security market line (SML) represents the equilibrium relation entailed by CAPM O e. CAPM assumes market efficiency O f. CAPM is a model of price formation that represents equilibrium risk-reward relations pertaining only to stock markets Which statement is NOT true? Select one: O a. A financing decision is the decision of how to make profits in financial markets b. Financial managers ought to be able to identify how much capital is needed, from where this capital can be raised, and how to spend it c. The main objective of shareholders is to see an increase in the price of their stocks in financial markets d. Capital budgeting decisions are decisions regarding which real assets that the firm should acquire