10-53 Considering the Capital Asset Pricing Model,which of the following observations is incorrect?
A) In a well-diversified portfolio,unsystematic risk can be largely diversified away.
B) Systematic risk is considered to be a diversifiable risk.
C) Total risk is the sum of systematic risk and unsystematic risk.
D) Systematic risk reflects the comovement of a stock with the market portfolio.
E) Unsystematic risk is specific to the firm.
Correct Answer:
Verified
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