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Author Question: Which of the following statements is correct? (Read 7 times)

jacob816

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Which of the following statements is correct?

The required return on a firm’s common stock is, in theory, determined solely by its market risk. If the market risk is known, and if that risk is expected to remain constant, then no other information is required to specify the firm’s required return.


If an investor buys enough stocks, they can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. Therefore, if a portfolio contained all publicly traded stocks, it wouldstill be exposed to market risk.


Portfolio diversification reduces the stand-alone risk of each individual stock held in a portfolio.


A security’s beta measures its diversifiable, or market, risk relative to that of an average stock.



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Marked as best answer by jacob816 on Aug 7, 2023

Hamad

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jacob816

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Reply 2 on: Aug 7, 2023
Wow, this really help


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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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